Prior to consulting with your team, the analytics group at Greyson created a model to predict which customers are most likely to renew using linear regression with the LASSO shrinkage method. This is...

This is incorrect. They should be using a classification model for this problem.

This is correct because LASSO can help prevent overfitting with large numbers of predictor variables.

This is in incorrect. With a large number of observations, they should use PCA for regression first and then fit the model to increase prediction accuracy.