CAS Exam MAS-I Fall 2019, Question 28
Study guide: Exam MAS-I
Determine which one of the following statements about Principal Component Regression (PCR) is FALSE.
- A) When performing PCR it is recommended that the modeler standardize each predictor prior to generating the principal components.
- B) PCR is useful for performing feature selection.
- C) PCR assumes that the directions in which features show the most variation are the directions that are associated with the target.
- D) PCR can reduce overfitting.
- E) The first principal component direction of the data is that along which the observations vary the most.
Answer this question and see the worked solution
Concepts tested
- Principal Components Regression
- Principal Components Analysis
- Bias-Variance Tradeoff
- Variable Selection