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ACCA Strategic Professional · Strategic Business Leader · Machine learning, AI and robotics

Kestrel Insurance wants a system that learns from 200,000 past claims, each labelled 'fraudulent' or 'genuine', so that it can classify new claims automatically. Which type of machine learning is being described?

This is supervised learning, because the model is trained on historical claims that already carry known labels and then predicts the label for new claims. Unsupervised learning would instead search unlabelled data for patterns or clusters without a predefined outcome.

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

Explanation

The training data carries known outcome labels (fraudulent or genuine), and the model learns to map inputs to those labels. That is supervised learning. Unsupervised learning would be used only if no labels existed and the aim was to find hidden groupings.

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