This question is basically five questions stapled together, which I didn't fully appreciate until I was already three minutes into talking about Gauss-Markov and realized I hadn't touched overfitting yet.
Start by clarifying the business goal and data context, then systematically critique each step of the workflow, and finally propose a redesigned approach that emphasizes out-of-sample validation, appropriate model assumptions, and interpretability.
Pro tip: Frame your critique around the bias-variance trade-off and the importance of aligning the model with the decision it will inform—this shows you think like a product data scientist, not just a statistician.
Ask what decision the model will support, what the target variable represents, and how the data was collected. This ensures the modeling approach aligns with business needs.
Explain that normality of Y is not required for OLS; instead, focus on linearity, independence, homoscedasticity, and normality of residuals. Also consider if dwell time is skewed or zero-inflated.
Point out that fitting all possible predictor combinations with squared and interaction terms leads to overfitting and multicollinearity. In-sample fit is not a valid measure of model performance.
Suggest using regularization (e.g., LASSO), cross-validation for model selection, and checking out-of-sample performance. Consider transformations or alternative models (e.g., gamma regression) if assumptions are violated.
Highlight the need for holdout or cross-validation, residual diagnostics, and ensuring the final model is interpretable and actionable for stakeholders.
AI-generated suggestions, not part of the candidate's original notes. May be inaccurate — verify before relying on them.