medium · CFA Level I quant
In the context of the 2027 Quantitative Methods curriculum, 'Big Data' preparation often involves identifying 'latent variables.' These are best defined as variables that:
- Cannot be observed directly but are inferred from other observable data points.
- Are only visible in historical datasets and have no predictive value for the machine learning model.
- Have been removed from the dataset because they were highly correlated with other inputs.
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