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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?

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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.

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