Exam DSA-C03 Topic 1 Question 271 Discussion

Actual exam question for Snowflake's DSA-C03 exam
Question #: 271
Topic #: 1

You are tasked with validating a regression model predicting customer lifetime value (CLTV). The model uses various customer attributes, including purchase history, demographics, and website activity, stored in a Snowflake table called 'CUSTOMER DATA. You want to assess the model's calibration specifically, whether the predicted CLTV values align with the actual observed CLTV values over time. Which of the following evaluation techniques would be MOST suitable for assessing the calibration of your CLTV regression model in Snowflake?

A. Calculate the Mean Absolute Error (MAE) and Root Mean Squared Error (RMSE) on a hold-out test set to quantify the overall prediction accuracy. B. Create a calibration curve (also known as a reliability diagram) by binning the predicted CLTV values, calculating the average predicted CLTV and the average actual CLTV within each bin, and plotting these averages against each other. C. Evaluate the model's residuals by plotting them against the predicted values and checking for patterns or heteroscedasticity. D. Calculate the R-squared score on a hold-out test set to assess the proportion of variance in the actual CLTV explained by the model. E. Conduct a Kolmogorov-Smirnov test to check the distribution of predicted and actual value.

Suggested Answer: B Vote an answer

Option B is the most suitable technique for assessing calibration. A calibration curve directly visualizes the relationship between predicted and actual values, allowing you to see if the model is systematically over- or under-predicting CLTV for different ranges of predicted values. Options A, C, and D are useful for assessing overall accuracy and model fit but do not directly address calibration. MAE and RMSE (A) measure overall error magnitude. Residual analysis (C) can reveal problems with model assumptions. R-squared (D) measures the explained variance, not calibration. Option E measures whether two samples follow the same distribution, however, it would not be most suitable for assessing calibration of your CLTV regression model.

by Genevieve at Jul 25, 2025, 04:42 PM

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