A company wants to develop a model that can determine if a transaction is fraudulent or legitimate. What type of machine learning task is appropriate for this scenario?
Clustering
Regression
Dimensionality Reduction
Classification
Classification - This is the correct answer. Fraud detection is a classification task because the model needs to classify each transaction as either fraudulent or legitimate, which involves assigning data points to predefined categories or labels.
Regression is used for predicting continuous numerical values for example sales forecasts or prices, not for classifying transactions into categories such as "fraudulent" or "legitimate."
Clustering is an unsupervised learning technique used to group data based on similarities, but it is not suitable for determining whether a transaction is fraudulent or legitimate, which requires labeled data and a classification approach.
Dimensionality Reduction is used to reduce the number of features in the data, typically for improving performance or visualization, but it is not a task in itself for determining fraud or legitimacy.
Bash is our AI bot, trained to help you pass your exam. AI Generated Content may display inaccurate information, always double-check anything important.
All IT & Cybersecurity Package plans include the following perks and exams .
Our pricing is simple. Full access to all certifications and exams in each package, for one price.
As many practice tests for as many topics as you want.
Use study mode non-stop, no limits.
Access to our AI assistant, Bash, trained to help you pass your exam.
Track your scores over time in study mode and report cards.
See how you improve over time, and where you need to focus.
Access our store with even bigger discounts than before.
Unlimited access to all performance questions and be prepared for the real thing.
All IT & Cybersecurity Package plans include unlimited access to the following study materials.
Create an account or sign in to access our study materials.