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

A bank's analytics team groups its customers into segments based on similar spending behaviour without using any pre-labelled categories. Which technique is this?

This is clustering, an unsupervised learning technique. It groups customers with similar spending behaviour without any predefined labels. Classification would need labelled categories in advance, and regression would predict a numeric value, so neither fits a segmentation exercise done without labels.

  1. AClustering, an unsupervised learning techniqueCorrect
  2. BClassification, a supervised learning technique
  3. CLinear regression for forecasting a numeric value
  4. DAssociation rule mining for the same data

Explanation

Grouping similar records without predefined labels is clustering, which is unsupervised learning. Classification needs labelled training data, and regression predicts a continuous value. Association rule mining finds co-occurring items rather than customer segments.

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