Exam MAS-I Practice Question 141

Study guide: Exam MAS-I

An insurer has 300 policies, each described by 500 telematics features, and a continuous loss measure as the response.

Determine which of the following statements are true.

• I. A least squares regression on all 500 features fits the 300 training responses exactly, even if no feature is related to the response.

• II. A lasso, with its penalty chosen by cross-validation, can still be fitted and its prediction error estimated.

• III. AIC remains a reliable way to compare the candidate least squares models, because it penalizes the number of parameters.

• A) I only

• B) I and II only

• C) I and III only

• D) II and III only

• E) The answer is not given by (A), (B), (C), or (D)

Answer this question and see the worked solution

Concepts tested

• High-Dimensional Data
• Regularization
• Cross-Validation
• AIC
• R-Squared

More questions from this set

• Exam MAS-I Practice Question 140
• Exam MAS-I Practice Question 142