Question 950 of 1,020

AI-900 Practice Question: Describe fundamental principles of machine learning on Azure

This AI-900 practice question tests your understanding of describe fundamental principles of machine learning on azure. Read the scenario carefully and evaluate each option against the stated constraints before committing to an answer. A key principle to apply: regularization adds a penalty to the loss function during training.. Once you have made your selection, read the full explanation to reinforce the concept and understand why each distractor is designed to mislead on exam day.

A data scientist trains a regression model to predict house prices using features like square footage, number of bedrooms, and location. The model achieves very high accuracy on the training data but performs poorly on a held-out test set. Which technique should the data scientist apply to reduce overfitting?

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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

Use regularization

Regularization (Option C) is the correct technique to reduce overfitting because it adds a penalty term to the loss function (e.g., L1 or L2 regularization), which discourages the model from learning overly complex patterns that fit noise in the training data. This helps the model generalize better to unseen data, such as the held-out test set, by constraining the magnitude of feature weights.

Key principle: Regularization adds a penalty to the loss function during training.

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 features

    Why it's wrong here

    Adding more features increases model complexity, which often worsens overfitting.

  • Decrease the training data size

    Why it's wrong here

    Having less training data generally increases the risk of overfitting, as the model has fewer examples to generalize from.

  • Use regularization

    Why this is correct

    Regularization (e.g., L1 or L2) penalizes large coefficients, simplifying the model and reducing overfitting.

    Related concept

    Regularization adds a penalty to the loss function during training.

  • Increase the number of training epochs

    Why it's wrong here

    More epochs can lead to further overfitting as the model becomes more specialized to the training data.

Common exam traps

Common exam trap: answer the scenario, not the keyword

The trap here is that candidates often think adding more data or features always improves performance, but in overfitting scenarios, regularization directly addresses the core issue of model complexity, while increasing features or epochs typically worsens it.

Detailed technical explanation

How to think about this question

Under the hood, regularization techniques like L2 (Ridge) add a squared magnitude of coefficients as a penalty term, effectively shrinking weights toward zero and reducing model complexity. In Azure Machine Learning, regularization can be applied via hyperparameter tuning using algorithms like Lasso or ElasticNet, and the regularization strength (alpha) is a critical parameter to balance bias and variance. A real-world scenario is predicting house prices with many correlated features (e.g., square footage and number of rooms), where regularization helps prevent the model from assigning extreme importance to redundant or noisy features.

KKey Concepts to Remember

  • Regularization adds a penalty to the loss function during training.
  • L1 (Lasso) and L2 (Ridge) are common types of regularization.
  • It discourages large coefficients, simplifying the model.
  • Regularization improves model generalization to unseen data.

TExam Day Tips

  • Watch for words such as best, first, most likely and least administrative effort.
  • Review why wrong options are wrong, not only why the correct option is correct.

Key takeaway

Regularization adds a penalty to the loss function during training.

Real-world example

How this comes up in practice

A cloud solutions architect for a retail company is evaluating services for a new workload. The correct answer here reflects best practice for the specific scenario described — not a general cloud recommendation. Regularization adds a penalty to the loss function during training. Cloud exam questions reward reading the constraint carefully: the same technology can be right or wrong depending on the use case.

What to study next

Got this wrong? Here's your next step.

Review regularization adds a penalty to the loss function during training., then practise related AI-900 questions on the same topic to reinforce the concept.

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FAQ

Questions learners often ask

What does this AI-900 question test?

Describe fundamental principles of machine learning on Azure — This question tests Describe fundamental principles of machine learning on Azure — Regularization adds a penalty to the loss function during training..

What is the correct answer to this question?

The correct answer is: Use regularization — Regularization (Option C) is the correct technique to reduce overfitting because it adds a penalty term to the loss function (e.g., L1 or L2 regularization), which discourages the model from learning overly complex patterns that fit noise in the training data. This helps the model generalize better to unseen data, such as the held-out test set, by constraining the magnitude of feature weights.

What should I do if I get this AI-900 question wrong?

Review regularization adds a penalty to the loss function during training., then practise related AI-900 questions on the same topic to reinforce the concept.

What is the key concept behind this question?

Regularization adds a penalty to the loss function during training.

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Last reviewed: Jun 11, 2026

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