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CFA Level 2 Quantitative Methods 2 Comprehensive Study Guide + Exam Questions & Solutions Graded A+

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CFA Level 2 Quantitative Methods 2 Comprehensive Study Guide + Exam Questions & Solutions Graded A+

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CFA Level 2 Quantitative Methods 2
Comprehensive Study Guide + Exam
Questions & Solutions Graded A+
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,Machine Learning - Answer: "find the pattern, apply the
pattern"
- better able than statistical approaches to handle problems
with many variables (high dimensionality) or with a high
degree of non-linearity


3 Distinct Classes of Techniques of Machine Learning -
Answer: 1. Supervised learning
2. Unsupervised learning
3. Deep learning


Supervised Learning - Answer: involves machine learning
algorithms that infer patterns between a set of inputs (the X's)
and the desired output (Y) - then used to map a given input
set into a predicted output
- requires a labeled dataset
- applying algo to this dataset is called Training the algo - once
trained, can use on other new inputs


Labeled Dataset - Answer: one that contains matched sets of
observed outputs and inputs

, Features - Answer: X's or independent variables


2 categories of Supervised Learning - Answer: 1. Regression
problems - If target y is continuous
2. Classification problems - if the target is categorical or
ordinal (ranked category) - focuses on sorting observations
into distinct categories
- determined by nature of target Y


The Target - Answer: Y or dependent variable


Unsupervised Learning - Answer: machine learning that does
not make use of labeled data, we have inputs (Xs) that are
used for analysis without any target Y being supplied
- algo seeks to discover structure within the data themselves


2 Main types of problems that are well-suited to unsupervised
machine learning - Answer: 1. Dimension Reduction
2. Clustering

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