Exam DY0-001 topic 1 question 53 discussion

Actual exam question from CompTIA's DY0-001

Question #: 53
Topic #: 1

A data scientist uses a large data set to build multiple linear regression models to predict the likely market value of a real estate property. The selected new model has an RMSE of 995 on the holdout set and an adjusted R2 of .75. The benchmark model has an RMSE of 1,000 on the holdout set. Which of the following is the best business statement regarding the new model?

A. The model should be deployed because it has a lower RMSE.
B. The model's adjusted R2 is exceptionally strong for such a complex relationship.
C. The model fails to improve meaningfully on the benchmark model.
D. The model's adjusted R2 is too low for the real estate industry.

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Suggested Answer: C 🗳️

by SuntzuLegacy at May 19, 2025, 10:57 p.m.

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SuntzuLegacy

1 month, 1 week ago

Selected Answer: C

From a practical, business-oriented standpoint, a mere reduction of the RMSE from 1000 to 995 often does not translate into a meaningful performance gain for predicting real estate market values—especially when considering potential measurement noise, model maintenance costs, or the complexity of switching models. Thus, Option C best reflects the business perspective: C. The model fails to improve meaningfully on the benchmark model.

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