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Financial Forensics · End Term · 13 Apr 2025 · January 2025 term · Set 1-3

Question 4: You have built a linear regression model for predicting t…

Question 4

+1 markOne correct option

You have built a linear regression model for predicting the number of users who access your payment platform daily. The following table shows the model’s performance:

You have built a linear regression model for predicting the number of users who access your payment platform daily. The following table shows the model’s performance:
Consider the following statements and choose the right option below:
Statement 1: Linear Regression is a not very good fit for this use case. Statement 2: Linear Regression is a very good fit for this use case. Statement 3: The model’s errors are not normally distributed.

  1. A

    Statement 2 and 3 are correct.

  2. B

    Statement 1 is correct and statement 3 is not the right explanation forstatement 1.

  3. C

    Statement 1 is correct and statement 3 is the right explanation for statement1.

  4. D

    Statement 2 is correct and statement 3 is not the right explanation forstatement 1.

Show answer

Correct answer

  • C

    Statement 1 is correct and statement 3 is the right explanation for statement1.

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Question 4 of 32 in the IIT Madras BS Financial Forensics (Financial Forensics) End Term paper sat on 13 Apr 2025, in the January 2025 term (IIT M IMPROVEMENT FN EXAM QIM2 13 Apr). It carries 1 mark.

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