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

An Indian lender uses a model that is trained on historical, labelled loan records, each marked 'defaulted' or 'repaid', to predict whether a new applicant will default. Which category of machine learning does this represent?

This is supervised learning. The model learns from historical records already labelled as defaulted or repaid and uses that mapping to predict outcomes for new applicants. Unsupervised learning works on unlabelled data, and reinforcement learning learns through rewards and penalties.

  1. ASupervised learningCorrect
  2. BUnsupervised learning
  3. CReinforcement learning
  4. DTransfer learning without labels

Explanation

Supervised learning trains on labelled examples to predict a known outcome for new data. Unsupervised learning would instead find hidden groupings in unlabelled data. Reinforcement learning relies on rewards and penalties from interaction, which is not the case here since outcomes are already labelled.

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