LASSO shrinkage method.

Database System Concepts
7th Edition
ISBN:9780078022159
Author:Abraham Silberschatz Professor, Henry F. Korth, S. Sudarshan
Publisher:Abraham Silberschatz Professor, Henry F. Korth, S. Sudarshan
Chapter1: Introduction
Section: Chapter Questions
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Prior to consulting with your team, the analytics group at Greyson created a model to predict which customers are most likely to renew using linear regression with the LASSO shrinkage method.

   

This is incorrect. They should be using a classification model for this problem.

   

This is correct because LASSO can help prevent overfitting with large numbers of predictor variables.

   

This is in incorrect. With a large number of observations, they should use PCA for regression first and then fit the model to increase prediction accuracy.

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