As model flexibility increases, test error typically decreases initially as the model captures underlying patterns. However, beyond a certain point, increased flexibility leads to overfitting, causing test error to rise. Thus, the correct behavior is that test error first decreases, then increases. ;
As model flexibility increases, test error initially decreases as the model fits underlying patterns. However, after a certain point, test error increases again due to overfitting. The correct option is C: It first decreases, then increases.
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