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Wasn't expecting this on a phone screen for an infra-leaning ML role.
Frame the problem as a two-stage optimization: first, for a fixed threshold t, derive the closed-form optimal b1 and b2 as the means of the target values in each region. Then, substitute these into the MSE and minimize over t by evaluating candidate thresholds (e.g., midpoints between sorted unique x values) or using a sweep algorithm.
Pro tip: Mention that this is a 1D decision stump and that the optimal threshold can be found in O(n log n) by sorting and using prefix sums, which is efficient and exact. Also note that if the data is noisy, regularization or cross-validation may be needed to avoid overfitting the threshold.
Write the MSE as a function of b1, b2, and t, summing squared errors over all data points. Emphasize that for a fixed t, the problem decouples into two independent mean estimation problems.
For a fixed t, the optimal b1 is the mean of y for x <= t, and optimal b2 is the mean of y for x > t. Derive these by setting derivatives to zero.
Substitute the optimal b1 and b2 back into the MSE to get a function of t alone. The optimal t lies between two consecutive sorted x values, so only consider midpoints (or the sorted x values themselves).
Sort the data by x, compute prefix sums of y and y^2, and evaluate the MSE for each candidate threshold in O(1) per candidate, yielding an O(n log n) algorithm overall.
Mention handling of ties, edge cases (e.g., all points on one side), and potential need for regularization or validation to avoid overfitting, especially with small datasets.
AI-generated suggestions, not part of the candidate's original notes. May be inaccurate — verify before relying on them.