Question 1 of 30
A data scientist is working on a predictive model to forecast sales for a retail company. The model is trained using a dataset that includes historical sales data, promotional events, and seasonal trends. After training the model, the data scientist evaluates its performance using a validation set. The evaluation metrics include Mean Absolute Error (MAE) and R-squared (R²). If the MAE is found to be 150 units and the R² value is 0.85, what can be inferred about the model\'s performance, and what steps should the data scientist consider for further improvement?
The model has a good fit, but the data scientist should consider feature engineering to improve accuracy.
The model is overfitting, and the data scientist should reduce the complexity of the model.
The model is underfitting, and the data scientist should increase the number of features used.
The model's performance is satisfactory, and no further action is needed.