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Interview QnA L&T Financial Services

Data Scientist Interview QnA
Company: L&T Financial Services

1. Assumptions in Multiple linear regression

The regression has five key assumptions:

Linear relationship.

Multivariate normality.

No or little multicollinearity.

No auto-correlation.

Homoscedasity

2. Entropy

Entropy is a measure of disorder or uncertainty and the goal of machine learning models and Data Scientists in general is to reduce uncertainty. Entropy can be defined as a measure of the purity of the sub split. Entropy always lies between 0 to 1.

3. Random forest algorithm

Random Forest is a classifier that contains a number of decision trees on various subsets of the given dataset and takes the average to improve the predictive accuracy of that dataset. It is based on model ensemble learning technique.

4. XGBoost Algorithm

XGBoost is an algorithm that has recently been dominating applied machine learning and Kaggle competitions for structured or tabular data. XGBoost is an implementation of gradient boosted decision trees designed for speed and performance.

5. Central limit theorem

The central limit theorem states that if you have a population with mean μ and standard deviation σ and take sufficiently large random samples from the population with replacement , then the distribution of the sample means will be approximately normally distributed.

6. VIF

Variance Inflation Factor (VIF) is used to detect the presence of multicollinearity. Variance inflation factors (VIF) measure how much the variance of the estimated regression coefficients are inflated as compared to when the predictor variables are not linearly related.

7. Difference Between Bagging and Boosting

Bagging is a way to decrease the variance in the prediction by generating additional data for training from dataset using combinations with repetitions to produce multi-sets of the original data. Boosting is an iterative technique which adjusts the weight of an observation based on the last classification.

8. P value and it’s significance

The p-value is the probability that the null hypothesis is true. (1 – the p-value) is the probability that the alternative hypothesis is true. A low p-value shows that the results are replicable. A low p-value shows that the effect is large or that the result is of major theoretical, clinical or practical importance.

9. Type I and Type II error

A type I error (false-positive) occurs if an investigator rejects a null hypothesis that is actually true in the population; a type II error (false-negative) occurs if the investigator fails to reject a null hypothesis that is actually false in the population.

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