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SRM EXAM STUDYGUIDE LATEST UPDATE

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  • December 4, 2023
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  • 2023/2024
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SRM EXAM STUDYGUIDE LATEST UPDATE



K-Means Clustering - ANSWER -randomly assign a cluster to each observation.
This serves as the initial cluster assignments

-algorithm needs to be repeated for each K

-number of cluster must be pre-specified

Hierarchical Clustering - ANSWER -number of cluster does not need to be
pre-specified

-the algorithm only needs to be performed once for any number of clusters

-does not require random assignments

-results of clustering depends on the choice of number of clusters, dissimilarity
measure, and linkage

Principal Component Analysis - ANSWER -provides low-dimensional linear
surfaces that are closest to the observations

-the first principal component is the line in the p-dimensional space that is the
closest to the observations

-finds a lower dimension representation of a dataset that contains as much
variation as possible

-serves as a tool for data visualization

-uses all variables

Principal components - ANSWER -the proportional of variance explained by an
additional principal component decreases as more principal components are
added

-the cumulative proportion of variance explained increases as more principal
components are added

-the least number of principal component provides the best understanding of the
data

-a scree plot provides a method for determining the number of principal
components to use

,Which is most appropriate to model if a personal is hospitalized or not -
ANSWER - Binomial distribution

-logit link function ( restricts values to range 0 to 1) like binary classification

Alternative fitting procedure - ANSWER - removes irrelevant variables from
the predictor, thus leads to a simpler model

-results are easier to interpret

-accuracy will improve due to reduction in variance

Random Forest - ANSWER -if the number of predictors used at each split is
equal to the total number of available predictors, the result is the same as using
bagging

-when building a specific tree, a new subset of predictor variables is used at each
split

-improvement over bagging because the trees are decorrelated

Linear regression - ANSWER -considered inflexible because the number of
possible models is restricted to a certain form

-allows the analyst discretion regarding adding or removing variables

Lasso Regression - ANSWER -less flexible than a linear regression

-determines the subset of variables to use while linear regression allows the
analyst discretion regarding adding or removing variables

-performs variable selection, because it is possible for the coefficient estimates to
be exactly 0

- as tuning parameter increases, flexibility decrease

-irreducible error will remain constant

Bagging - ANSWER -provides additional flexibility

Flexibility & easy to interpret - ANSWER there is a trade off between flexibility
and easy to interpret

simple linear regression - ANSWER y = B0 + B1x+e

- if e= 0 then the confidence interval equals the prediction interval because the

, prediction interval includes the irreducible error

- the prediction interval is always at least as wide as the confidence interval

- the confidence interval quantifies the possible range for E(y I x)

Bias-Variance Tradeoff - ANSWER -bias refers to the error arising from the
assumption in the statistical learning tool

-variance refers to the error arising from the sensitivity of the training data set

-as model flexibility increases, squared bias decreases and variance increases

For K-nearest neighbors classifier, as K increase - ANSWER - squared bias
increases

-variance decrease

-flexibility decreases

regression problems - ANSWER problems with a quantitative response

classification problems - ANSWER problems with a qualitative response

supervised problems - ANSWER -problems with a response

-Boosting

-K-nearest neighbors

-Regression tree

-logistic regression

-ridge regression

unsupervised problems - ANSWER -problems without a clear response

-cluster analysis

-K-means clustering

Best Model - ANSWER Model with the lowest MSE

For an statistical learning method, as flexibility increase - ANSWER -the
interpretability decreases

-the training MSE decreases

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