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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What this lesson covers
- Content
- Example 1
- Example 2
- Common Mistakes
- Key Takeaways
- Exam Shortcuts
Learning objectives
- 1a
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