Actuarial Notes

CAS Exam MAS-II Fall 2019, Question 38

Study guide: Exam MAS-II

Given the following three statements about tree-based methods for regression and classification:

I. The main difference between bagging and random forests is the number of predictors used to build individual trees. II. Single decision tree models generally have higher variance than random forest models. III. Random forests provide an improvement over bagging because trees in a random forest are less correlated then those in bagged trees.

Determine which of the statements I, II, and III are true.

  • A) I only
  • B) II only
  • C) III only
  • D) I, II, and III
  • E) The answer is not given by (A), (B), (C), or (D)

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