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With a non-linearly-separable dataset that contains some extra "noise" data points, using an SVM with slack variables to create a soft margin classifier, and a small value for the penalty parameter, $C$, that controls how much to penalize misclassified points, will often reduce overfitting the training data.

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True because small C means the penalty for mis-classifying a few points will be small and therefore we are more likely to maximize the margin between most of the points while misclassifying a few points including the noise points.
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