AI-900 Question 83
Select 2A retail company wants to predict future sales based on historical data and is also interested in grouping customers based on their buying behavior. Which machine learning techniques should the company use to address these goals?
- A
Regression
- B
Classification
- C
Clustering
- D
Reinforcement Learning
- E
Dimensionality Reduction
Show answer and explanation
Correct answers: A, C
Explanation
For the given scenario, the company needs to predict future sales, which involves regression since it predicts continuous numerical outputs. Additionally, grouping customers based on buying behavior requires clustering, which is an unsupervised learning technique designed for grouping similar data points. These two techniques together address the company's goals.
- A. Correct.
Regression is used for predicting continuous numerical values, such as future sales, making it suitable for part of the company's goal.
- B. Incorrect.
Classification is used for categorizing data into predefined labels, which is not applicable for either predicting future sales or grouping customers.
- C. Correct.
Clustering is used for grouping data points with similar characteristics, making it ideal for grouping customers based on buying behavior.
- D. Incorrect.
Reinforcement Learning involves training an agent to make sequential decisions in an environment, which is not relevant for sales prediction or customer grouping.
- E. Incorrect.
Dimensionality Reduction is used for reducing the number of features in a dataset, which is not directly related to predicting sales or grouping customers.