What is Machine learning in FRM Part 1?

A family of algorithms that learn predictive patterns from data rather than relying only on a prespecified parametric equation. For FRM use, validation, interpretability, leakage control, and stability matter as much as in-sample fit.

Machine learning

FRM Part 1 glossary · Quantitative Analysis

Definition

A family of algorithms that learn predictive patterns from data rather than relying only on a prespecified parametric equation.

Machine learning in plain English

For FRM use, validation, interpretability, leakage control, and stability matter as much as in-sample fit.

Related FRM Part 1 terms

Bayes' theorem
Bootstrapping (term structure)
Central limit theorem
Copula
Exponentially weighted moving average (EWMA)
Generalized Autoregressive Conditional Heteroskedasticity (GARCH)
Heteroskedasticity
Monte Carlo simulation
Ordinary least squares (OLS)
p-value

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