A data scientist uses a large data set to build multiple linear regression models to...

→ The difference between the benchmark RMSE (1,000) and the new model RMSE (995) is minimal and may not justify replacing the existing model. Though the adjusted R² is decent, business decisions should be based on whether the improvement is statistically and practically significant.

Why the other options are incorrect:

A: The RMSE improvement is marginal and may not be worth deployment effort.

B: The adjusted R² of 0.75 is moderate, not necessarily “exceptionally strong.”

D: The claim about industry standards is unsupported and not universally true.

Official References:

CompTIA DataX (DY0-001) Study Guide – Section 3.2:“Model selection must consider both statistical improvement and practical significance.”

Data Science Best Practices, Chapter 8:“Small improvements in performance metrics must be evaluated in the context of deployment cost and business impact.”

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