Question #2

Reading: Reading 3 Machine Learning

PDF File: Reading 3 Machine Learning.pdf

Page: 1

Status: Unattempted

Correct Answer: B

Part of Context Group: Q2-5 First in Group
Shared Context
of 23 The technique in which a machine learns to model a set of output data from a given set of inputs is best described as: A) supervised learning. B) deep learning. C) unsupervised learning. Joyce Tan manages a medium-sized investment fund at Marina Bay Advisors that specializes in international large cap equities. Over the four years that she has been portfolio manager, Tan has been invested in approximately 40 stocks at a time. Tan has used a number of methodologies to select investment opportunities from the universe of investable stocks. In some cases, Tan uses quantitative measures such as accounting ratios to find the most promising investment candidates. In other cases, her team of analysts suggest investments based on qualitative factors and various investment hypotheses. Tan begins to wonder if her team could leverage financial technology to make better decisions. Specifically, she has read about various machine learning techniques to extract useful information from large financial datasets, in order to uncover new sources of alpha.
Question
Tan is interested in using a supervised learning algorithm to analyze stocks. This task is least likely to be a classification problem if the target variable is:
Answer Choices:
A. continuous
B. ordinal
C. categorical
Explanation
Supervised learning can be divided into two categories: regression and classification. If the target variable is categorical or ordinal (e.g., determining a firm's rating), then it is a classification problem. If the target variable to be predicted is continuous, then the task is one of regression.
Actions
Practice Flashcards