Which scenario is most appropriate for applying regression techniques in machine learning?
Grouping customers based on purchasing behavior
Forecasting the future price of a stock
Detecting fraudulent transactions in financial data
Classifying emails as spam or not spam
Regression analysis is used when the goal is to predict a continuous numerical value based on input variables. Forecasting the future price of a stock is a typical regression problem because it involves predicting a numeric value.
Classifying emails as spam or not spam is a classification task because it involves assigning discrete categories to data points.
Grouping customers based on purchasing behavior is a clustering task, as it involves identifying natural groupings within the data without predefined labels.
Detecting fraudulent transactions in financial data is also a classification problem, aiming to categorize transactions as fraudulent or legitimate.
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