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CS Professional · Artificial Intelligence, Data Analytics and Cyber Security - Laws and Practice · Artificial Intelligence - Introduction and Basics

A bank trains a model on historical loan records in which each past application is tagged with the final outcome 'repaid' or 'defaulted'. The model then predicts the outcome for new applicants. Which type of machine learning is this?

This is supervised learning, because the model is trained on historical records that already carry known outcome labels, repaid or defaulted, and learns to predict those labels for new applicants. Unsupervised learning would use unlabelled data to discover groupings instead.

  1. AUnsupervised learning
  2. BSupervised learningCorrect
  3. CReinforcement learning
  4. DRule-based expert system

Explanation

The training data carries known labels (repaid or defaulted), and the model learns a mapping from inputs to those labels. That is supervised learning. Unsupervised learning would work on unlabelled data to find structure such as clusters.

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