A professional association is funded by membership fees. The membership renewal occurs every 5 years. Although, they have a strong subscription rate each year, their renewal rate is low. They are working with an external firm specializing in Business Analytics to identify the groups of customers that have a high likelihood of cancelling their subscription after their first 5-year term ends.

A professional association is funded by membership fees. The membership renewal occurs every 5 years. Although, they have a strong subscription rate each year, their renewal rate is low. They are working with an external firm specializing in Business Analytics to identify the groups of customers that have a high likelihood of cancelling their subscription after their first 5-year term ends.

This type of study is called:
A . Untrained learning
B . Supervised learning
C . Trained learning
D . Unsupervised learning

View Answer

Answer: D

Explanation:

Unsupervised learning is a type of study that involves finding patterns or clusters in data without any predefined labels or outcomes. It is useful for exploring data and discovering hidden structures or groups of customers. For example, the professional association can use unsupervised learning to identify the characteristics of customers who are likely to cancel their subscription after their first 5-year term ends, and then design strategies to retain them12

Reference: 1: What is Unsupervised Learning? – IBM 2: Unsupervised Learning – IIBA BABOK Guide v3