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Category: E20-007 (v.1)

Exam e20-007: Data Science Associate (update June 28th, 2015)

What is the sum of the probabilities that the model assigns to all the filers in your training set that have b

You are building a logistic regression model to predict whether a tax filer will be audited within the
next two years. Your training set population is 1000 filers. The audit rate in your training data is
4.2%. What is the sum of the probabilities that the model assigns to all the filers in your training set
that have been audited?

what is a way that you could try to increase the R2 of the model without artificially inflating it?

Refer to exhibit.

You are asked to write a report on how specific variables impact your client’s sales using a data
set provided to you by the client. The data includes 15 variables that the client views as directly
related to sales, and you are restricted to these variables only.
After a preliminary analysis of the data, the following findings were made:
1. Multicollinearity is not an issue among the variables
2. Only three variables—A, B, and C—have significant correlation with sales
You build a linear regression model on the dependent variable of sales with the independent
variables of A, B, and C. The results of the regression are seen in the exhibit.
You cannot request additional datA. what is a way that you could try to increase the R2 of the
model without artificially inflating it?


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