AI-900 Practice Question: Describe fundamental principles of machine learning on Azure
A data scientist trains a model to predict house prices. The model achieves 99% accuracy on the training data but only 80% accuracy on new test data. Which technique is most likely to help improve the model's generalization?
⚠ Common exam trap
It's easy for candidates to confuse overfitting with underfitting and choose to increase model complexity (Option D) or reduce data (Option A), when the correct response is to simplify the model via regularization.
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
✓
Apply regularization to the model
The model is overfitting: it has memorized the training data (99% accuracy) but fails to generalize to new data (80% accuracy). Regularization (e.g., L1 or L2) penalizes large weights, reducing the model's complexity and forcing it to learn simpler patterns that generalize better. This directly addresses the variance problem without discarding useful information.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Reduce the amount of training data
Why it's wrong here
Reducing the amount of training data is the opposite of what is needed when a model overfits. With fewer examples, the model has even less evidence to distinguish genuine signal from noise, so its variance increases and the training-to-test performance gap normally becomes larger. Overfitting arises from high model capacity relative to the data available, and shrinking the dataset only makes that mismatch worse.
- ✓
Apply regularization to the model
Why this is correct
Regularization directly targets overfitting by adding a penalty term to the loss function, such as an L1 (Lasso) or L2 (Ridge) weight penalty, or by using dropout in neural networks. This constrains the magnitude of learned coefficients, reducing the model's effective capacity and forcing it to represent smoother, more general patterns. As a result, the model is less likely to memorize idiosyncratic details of the training set and typically generalizes better on unseen house-price data.
- ✗
Remove some features from the dataset
Why it's wrong here
Removing some features can occasionally help if those features are pure noise or highly redundant, but it is a blunt and heuristic approach that risks discarding predictive information. Unlike regularization, which systematically shrinks the influence of all features while retaining them, feature deletion does not adapt to the strength of each feature's relationship with the target. In many overfitting scenarios, the problem is not the presence of irrelevant inputs but the model's freedom to fit complex interactions, so deletion often provides little benefit.
- ✗
Increase the number of layers in the neural network
Why it's wrong here
Increasing the number of layers in the neural network raises its parameter count and expressiveness, which typically makes overfitting more severe rather than less. If the model is already memorizing training data, adding more layers gives it even greater ability to fit noise and spurious patterns, widening the gap between training and validation performance. The appropriate response to overfitting is to reduce capacity or add constraints, not to increase architectural complexity.
Go deeper
Related to this question
Learn chapter
Large Language Models (LLMs)
Key term
Training data
Training data is a set of examples used to teach a machine learning model how to make predictions or decisions.
Key term
Model
In IT and AI, a model is a trained mathematical representation that learns patterns from data to make predictions or decisions.
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