AWS Certified AI Practitioner (AIF-C01) — Question 188

A financial company wants to flag all credit card activity as possibly fraudulent or non-fraudulent based on transaction data.

Which type of ML model meets these requirements?

Answer options

• A. Regression
• B. Diffusion
• C. Binary classification
• D. Multi-class classification

Correct answer: C

Explanation

The correct answer is C, Binary classification, because this type of model is designed to distinguish between two categories: fraudulent and non-fraudulent. The other options, such as Regression (A) and Multi-class classification (D), do not fit the requirement of a binary outcome, while Diffusion (B) is not applicable in this context.