3. You are given a dataset of multiple customer profiles and whether they have been sanctioned loan or not. What type of machine learning algorithm will you use to create a model to predict whether to sanction loan to a customer or not? a) Supervised b) Unsupervised  Your answer: _______

In many ways, a descriptive model differs from a prescriptive model.

The predictive performance of a model is the measure of how close the model’s prediction values are to the actual values. A close-to-ideal model would have the minimum error in the predicted and actual values. The validation set is used to assess the predictive ability of the model which has been trained using the training set. True False

Using descriptive or prescriptive models is advantageous; however, which is more effective?