US CMA Part 1 · Chapter 6 · Question 21 of 22
A retailer wants to group its customers into segments based on purchasing behavior, without any predefined labels for the groups. Which data mining technique is most suitable?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) Clustering
Explanation
Clustering is an unsupervised learning technique that groups observations by similarity without predefined categories. Classification is supervised and requires labeled examples, and regression predicts a continuous outcome.
More Technology and Analytics MCQs
- Q1What is the defining characteristic of an enterprise resource planning (ERP) system?
- Q2Which activity belongs to the expenditure (purchase-to-pay) cycle rather than the revenue cycle?
- Q3What is the main purpose of enterprise performance management (EPM) software?
- Q4In the systems development life cycle (SDLC), during which phase are user requirements gathered and the current system studied in detail?
- Q5Which task is the best candidate for robotic process automation (RPA)?
