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

Marlow Retail uses a system that is given thousands of past customer records, each labelled 'churned' or 'stayed', and learns a rule to predict whether new customers will churn. Which type of machine learning is being used?

It is supervised learning, because the algorithm is trained on historical records that already carry outcome labels (churned or stayed) and learns to predict those labels for new customers. Unsupervised learning uses unlabelled data, and reinforcement learning learns through rewards.

  1. ASupervised learningCorrect
  2. BUnsupervised learning
  3. CReinforcement learning
  4. DRobotic process automation

Explanation

The training data contains known outcome labels (churned or stayed), and the model learns to map inputs to those labels. This is supervised learning. Unsupervised learning would have no labels and would look for hidden groupings. Reinforcement learning relies on rewards from actions, not labelled records.

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