CFA Practice Question

There are 155 practice questions for this study session.

CFA Practice Question

Which scenarios will likely lead to underfitting?

I. big dataset
II. small dataset
III. small number of features
Correct Answer: II and III

Underfitting refers to a model that cannot learn the training dataset. It occurs when a model is too simple. Informed by too few features or sample size too small - which makes it inflexible in learning from the dataset.

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