Suppose That an Analyst Classified a New Record Using the Following

question 26

Multiple Choice

Suppose that an analyst classified a new record using the following sequential steps (i) find identical records in the training sample, (ii) determine a group, to which majority of these records belong, (iii) assign the new record to the group in step (ii) . This technique is called

• A) naive Bayes
• B) Bayes
• C) conditional probability estimation
• D) posterior probability estimation

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Definitions:

Return

The income generated from an investment or the gain from an asset relative to the investment's or asset's cost.

Risk

The potential for losing something of value or the chance of an action leading to an undesirable outcome.

Financial Statements

Compiled reports that show a company's financial health, including balance sheet, income statement, and cash flow statement, among others.

Balance Sheet

A financial statement that gives a snapshot of a company’s financial condition at a specific time, detailing assets, liabilities, and shareholders' equity.