Errata if you purchased between August 6,
2019 and September 11, 2019:
Page 21; Exercise 1.12: Replace 12% by 12.5% (This was kindly pointed out by Emilio Barone)
Page 27: Figure 2.2: Change “country” to “observation” in second box. (This was kindly pointed out by Raymond Kan)
Page 41: 10-11 lines from end: replace “five” by “four” in two places (This was kindly pointed out by Emilio Barone)
Page 45: 9 lines from end. Replace “other other” by “or other”
Page 52: Line 14: Replace bi by bj (This was kindly pointed out by Emilio Barone)
Page 70: Last equation: final term should be bmXm, not Xm (This was kindly pointed out by Emilio Barone)
Page 75: line 2: Replace “training set” with “test set” (This was kindly pointed out by Emilio Barone)
Page 79: First line: Replace subscipt i by subscript j in two places. (This was kindly pointed out by Emilio Barone)
Page 88: First equation: Insert ] after (0.1556). (This was kindly pointed out by Emilio Barone)
Page 95: six lines from end: replace 698.18 by 696.19 and 31.28 by 31.29 (This was kindly pointed out by Emilio Barone)
Page 96: 10 lines from end: replace “unconditional” by “conditional” (This was kindly pointed out by Emilio Barone)
Page 99: Figure 4.4: replace $353,593 by $353,573 (This was kindly pointed out by Emilio Barone)
Page 112: footnote 2: Replace 
by 
(This was kindly pointed out by Emilio
Barone)
Page 112: Third equation: Replace zj by zi. (This was kindly pointed out by Emilio Barone)
Page 113: Table 5.2 mistakenly calculates loans misclassified using the edges of the path rather than the middle. When the middle of the path is used it is always the case that 0% are misclassified. This example will be changed for future printings. (I am grateful to Raymond Kan for pointing this out)
Page 117: second line above the figure: “C=0.1” should be “C=0.01”
Page 117: Third line: Replace wi by wj (This was kindly pointed out by Emilio Barone)
Page 128: equation (6.2): insert a minus sign in front of the expression. Also the expression for the gradient in the final line of footnote 3 should be (E+−E-)/0.02 (This was kindly pointed out by Emilio Barone)
Page 132: Caption for Figure 6.5 should read: Situation where there is a local minimum at B
Page 141: equation for 
Second equation: Replace j=1 by i=1. Also it should
have a minus sign in front of right hand side (This was kindly pointed
out by Emilio Barone)
Page 152: In equation for Q(8,1) replace 0.0025 by ─0.0025. (This was kindly pointed out by Jacky Chen).
Page 154: Six lines from end: Replace “Table 7.8” by “Table 7.7”. (This was kindly pointed out by Emilio Barone)
Page 172: Answer to 1.11: the standard deviation of the
errors for the training set are correct, but those for the test set are wrong. They
should be 35,588 for the polynomial of degree 3 model and 37,427 for the polynomial of
degree four model. (This was kindly pointed out by Silvio Bencini
Page 180: Replace 
by 
in each of the two equations. (This was
kindly pointed out by Emilio Barone)
Page 181: The table for Problem 5.11 mistakenly calculates loans misclassified using the edges of the path rather than the middle. When the middle of the path is used, the loans misclassified for values of C equal to 0.01, 0.002, 0.001, 0.0005, 0.0003, 0.0002, and 0.0001 are 20%,20%, 20%, 20%, 30%, 40%, 40%, respectively.