Types of Modeling Problems and Methods

Free SOA Exam SRM (Statistics for Risk Modeling) lesson in Basics of Statistical Learning. 8 min read, ~1,235 words.

Supervised learning has a labeled target Y; unsupervised learning has only inputs X. Clustering and PCA are unsupervised; regression and classification are supervised. Regression predicts a quantitative (numeric) response; classification predicts a qualitative (categorical) response. The method follows the response type. K-nearest neighbors, trees, and neural nets can do BOTH...

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