A Machine Learning Specialist Is Building a Prediction Model for a Large

question 45

Multiple Choice

A Machine Learning Specialist is building a prediction model for a large number of features using linear models, such as linear regression and logistic regression. During exploratory data analysis, the Specialist observes that many features are highly correlated with each other. This may make the model unstable. What should be done to reduce the impact of having such a large number of features?

• A) Perform one-hot encoding on highly correlated features.
• B) Use matrix multiplication on highly correlated features.
• C) Create a new feature space using principal component analysis (PCA)
• D) Apply the Pearson correlation coefficient.

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Definitions:

Mortgage Industry

Comprises companies and individuals involved in creating, servicing, and processing mortgages for residential and commercial properties, including lenders, mortgage brokers, and real estate professionals.

Housing Crisis

A situation in which affordable housing is scarce, leading to increased homelessness and housing insecurity among populations.

Foreclosures

The legal process by which a lender takes control of a property, evicts the homeowner, and sells the home after the homeowner fails to make full principal and interest payments on a loan.

Affordable Housing

Housing that is reasonably priced and accessible to those with median or below-median income levels.