Which Statement Is True About Cross-Validation

question 51

Multiple Choice

Which statement is true about cross-validation.

• A) A special form of validation is called double cross-validation where the sample is split into halves.
• B) It can be used for evaluating the model for chance variations in the data and other problems associated with regression.
• C) It examines whether the regression model continues to hold on comparable data not used in the estimation.
• D) All of the above statements are true.

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Definitions:

General Obligation Bond

A municipal bond backed by the full faith and credit of the issuing authority, with repayment guaranteed by the authority's ability to tax.

Revenue Bond

A type of municipal bond supported by the revenue from a specific project, like a toll road or public utility, rather than from tax revenue.

Secured Bond

A type of bond backed by the issuer's assets, providing a safeguard to bondholders by promising specific collateral in case of default.

Pass-through Bond

A type of security that pools investments and passes the income from these investments through to the investors.