Question

Principal components or factor analytic models on covariates are often useful for reducing complex covariate spaces.

(a) True

(b) False

The question was posed to me at a job interview.

Question is taken from Binary and Count Outcomes in portion Statistical Inference and Regression Models of Data Science

Answer 1

Correct option is (a) True

To explain: The space of models explodes quickly as you add interactions and polynomial terms.