Answer:
False. See expplanation below.
Explanation:
Training error by definition is the "error that you get when you run the trained model back on the training data."
False
Sometimes if we have more predictors than the neccesary we create bias and other problems like multicolinearity between the independnet variables. The idea is have a parsimonious model with the ideal number of variables and not with too much or too low variables.
For example we can have a linear model with just one predictor adjusted to the response variable perfect. And we can have another model with the same response variable but with 10 predictors with the same correlation and significance.
Always is important to understand the context of a problem in order to select the predictors to estimate the response variable in order to don't overestimate the number of parameters neccesary to use.
Lydia could take lots of people's signatures that agrees with her. is there even a medically reason why they have to wear white shoes?
Answer:
NPV $4.20 million(positive)
IRR 19.60%
( greater than the cost of capital of 12%)
Explanation:
The net present value of the project is the present value of future cash flows discounted at the required rate of return of 12% minus the initial investment outlay
Present value of a future cash flow=future cash flow/(1+r)^n
r=required rate of return=12%
n is the year in which the cash flow is expected, it is 1 for year 1 cash flow, 2 for year 2 and so on.
NPV=$3/(1+12%)^1+$3/(1+12%)^2+$3/(1+12%)^3+$3/(1+12%)^4+$3/(1+12%)^5+$3/(1+12%)^6+$3/(1+12%)^7+$3/(1+12%)^8+$3/(1+12%)^9+$3/(1+12%)^10-$12.75
NPV=$4.20 million
The internal rate of return is the discount at which the present value of the future cash flow and the initial outlay are the same using IRR excel function
Years cash flows
0 ($12.75)
1 $3
2 $3
3 $3
4 $3
5 $3
6 $3
7 $3
8 $3
9 $3
10 $3
IRR(B2:B12) 19.60%
Answer:
At the end of the sixth year, you will have:
= $8,487.17.
Explanation:
a) Data and Calculations:
Annual savings = $1,000
Interest rate per year = 10%
Period of savings = 6 years
First deposit = today
From an online financial calculator:
N (# of periods) 6
I/Y (Interest per year) 10
PV (Present Value) 0
PMT (Periodic Payment) 1000
Results
FV = $8,487.17
Sum of all periodic payments $6,000.00
Total Interest $2,487.17
