AI-900 Question 88
Single answerA retail company wants to predict the total monthly sales revenue for its stores based on input factors such as the number of customers, advertising spend, and average product price. Which type of machine learning scenario does this represent?
- A
Regression
- B
Classification
- C
Clustering
- D
Anomaly detection
Show answer and explanation
Correct answer: A
Explanation
This scenario involves predicting a continuous numerical value (monthly sales revenue) based on multiple input factors. Regression is the appropriate machine learning approach for such problems, as it is specifically designed to handle continuous outputs.
- A. Correct.
Correct: Regression is used to predict continuous numerical values, such as sales revenue, based on input variables.
- B. Incorrect.
Incorrect: Classification is used for predicting categorical outcomes, such as determining whether an email is spam or not.
- C. Incorrect.
Incorrect: Clustering is used for grouping similar data points without predefined categories, such as customer segmentation.
- D. Incorrect.
Incorrect: Anomaly detection identifies data points that deviate significantly from the norm, such as detecting fraudulent transactions.