Which Statement Is True About Prediction Problems

question 7

Multiple Choice

Which statement is true about prediction problems?

• A) The output attribute must be categorical.
• B) The output attribute must be numeric.
• C) The resultant model is designed to determine future outcomes.
• D) The resultant model is designed to classify current behavior.

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Definitions:

Economies of Scale

The economic benefits gained by companies because of their large scale of operation, which typically results in a lower cost per unit of output as the scale increases.

Average Fixed Costs

The total fixed costs associated with production (costs that do not change with output) divided by the quantity of output produced.

Output Increases

A rise in the quantity of goods or services produced by a company or economy.

Law of Diminishing Returns

The principle that as the level of investment in a particular area increases, the rate of profit from that investment, after a certain point, cannot continue to increase if other inputs remain constant.