Q$2$

The Chartered Financial Analyst $($CFA$)$ designation is the de facto professional certification for the financial industry. Employers encourage their prospective employees to complete the CFA exam. Daniella Campos, an HR manager at SolidRock Investment, is reviewing $10$ job applications. Given the low pass rate for CFA Level $1,$ Daniella wants to know whether or not the $10$ prospective employees will be able to pass the CFA Level $1$ exam. Historically, the pass rate is higher for those with work experience and a good GPA in college.

With this insight, she compiles the information on $63$ current employees who took the CFA Level $1$ exam last year, including the employee$$s success on the exam $(1$ for pass, $0$ for fail$),$ the employee$$s college GPA, and years of work experience. A portion of the CFA$\_$Data worksheet is shown in the accompanying table.

DatasetDownload Dataset

Pass GPA Experience

$13\mathrm{.}2011$

$13\mathrm{.}7515$

: : :

$13\mathrm{.}216$

Question at position $3$

$3$

$6$ points

Question at position $3$

Perform KNN analysis to estimate a classification model for the CFA Level $1$ exam using the CFA$\_$Data worksheet and score the $10$ job applications in the CFA$\_$Score worksheet.

Use $70\%$ of the data for Training and $30\%$ for Validation with $12345$ as the random seed.

Use $12345$ as random seed when building the KNN model.

image.png

What are the misclassification rates for k $=1,2,$ and $3$ in the validation dataset?

k $=1$:

Question Blank $1$ of $3$

type your answer...

k $=2$:

Question Blank $2$ of $3$

$11$

k $=3$:

Question Blank $3$ of $3$

$8$

Question at position $4$

$4$

$2$ points

Question at position $4$

What is the optimal value of k in the validation dataset?

Optimal value of k:

Question Blank $1$ of $1$

type your answer...

Question at position $5$

$5$

$2$ points

Question at position $5$

What is the predicted CFA Level $1$ outcome for the first job applicant in the score dataset?

Predicted Class of first job applicant $($GPA $=2\mathrm{.}97$ and Experience $=10)$:

Question Blank $1$ of $1$

type your answer...

Stimulus for questions at positions: $6,7,8$

The following text applies to the questions at positions $6,7,8$

Q$3$