AI-900 Question 90
Single answerA company wants to predict the future sales revenue for its products based on historical data, such as past sales, advertising costs, and economic indicators. Which type of machine learning scenario should be used in this case?
- A
Classification
- B
Clustering
- C
Regression
- D
Natural Language Processing
Show answer and explanation
Correct answer: C
Explanation
This scenario involves predicting a continuous numerical value (sales revenue) based on historical data, which is a classic regression problem. Regression techniques are designed to model the relationship between input features and a continuous target variable, making it the appropriate choice for this case.
- A. Incorrect.
Classification is used to predict discrete categories or labels (e.g., spam vs. not spam), not continuous values like sales revenue.
- B. Incorrect.
Clustering is used to group similar data points together without predefined labels (e.g., customer segmentation), which is not relevant for predicting a continuous value like sales revenue.
- C. Correct.
Regression is the correct choice as it is used to predict continuous numerical values, such as sales revenue, based on input features.
- D. Incorrect.
Natural Language Processing (NLP) focuses on analyzing and processing text or speech data, which is unrelated to predicting numerical sales revenue.