Question #8
Reading: Reading 3 Machine Learning
PDF File: Reading 3 Machine Learning.pdf
Page: 3
Status: Unattempted
Correct Answer: A
Question
Overfitting is least likely to result in:
Answer Choices:
A. higher number of features included in the data set
B. higher forecasting accuracy in out-of-sample data
C. inclusion of noise in the model
Explanation
Overfitting results when a large number of features (i.e., independent variables) are
included in the data sample. The resulting model can use the "noise" in the dependent
variables to improve the model fit. Overfitting the model in this way will actually decrease
the accuracy of model forecasts on other (out-of-sample) data.