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AI0-001 AI Concepts and Techniques Practice Question

A team is training a recurrent neural network (RNN) with LSTM units to predict stock prices. The validation loss is significantly higher than the training loss. Which action is MOST likely to reduce the gap?

Answer choices

Why each option matters

Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.

Correct answer & explanation

Increase the dropout rate in LSTM layers

A large gap between training and validation loss indicates overfitting. Increasing dropout (a regularisation technique) reduces overfitting by preventing co-adaptation of neurons. Increasing LSTM units or epochs would worsen overfitting, and reducing sequence length may lose important temporal patterns.

Answer analysis

Option-by-option breakdown

For each option: why learners choose it and why it is or isn't the right answer here.

  • Increase the number of LSTM units

    Why it's wrong here

    Increasing model capacity would likely increase overfitting.

  • Increase the number of training epochs

    Why it's wrong here

    More epochs can lead to overfitting, making the gap worse.

  • Reduce the sequence length

    Why it's wrong here

    Reducing sequence length may lose important information and might not address overfitting.

  • Increase the dropout rate in LSTM layers

    Why this is correct

    Dropout regularises the network, reducing overfitting and closing the train-validation gap.

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