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Financial Risk Manager Part 1

Financial Risk Manager Part 1

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Which statement(s) best describe(s) the advantages of using Classification and Regression Trees (CART) instead of K-Nearest Neighbor (KNN)?

  • Statement I: For CART there is no requirement to specify an initial hyperparameter (like K).
  • Statement II: For CART there is no requirement to specify a similarity (or distance) measure.
  • Statement III: For CART the output provides a visual explanation for the prediction.

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