How should the Specialist frame this business problem?

A Machine Learning Specialist works for a credit card processing company and needs to predict which transactions may be fraudulent in near-real time. Specifically, the Specialist must train a model that returns the probability that a given transaction may be fraudulent.

How should the Specialist frame this business problem?
A . Streaming classification
B . Binary classification
C . Multi-category classification
D . Regression classification

View Answer

Answer: B

Explanation:

Binary classification is a type of supervised learning problem where the goal is to predict a categorical label that has only two possible values, such as Yes or No, True or False, Positive or Negative. In this case, the label is whether a transaction is fraudulent or not, which is a binary outcome. Binary classification can be used to estimate the probability of an observation belonging to a certain class, such as the probability of a transaction being fraudulent. This can help the business to make decisions based on the risk level of each transaction.

References:

Binary Classification – Amazon Machine Learning

AWS Certified Machine Learning – Specialty Sample Questions