AWS Certified Machine Learning – Specialty — Question 81

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 fraudulent.
How should the Specialist frame this business problem?

Answer options

• A. Streaming classification
• B. Binary classification
• C. Multi-category classification
• D. Regression classification

Correct answer: B

Explanation

The correct answer is B, Binary classification, because the task involves predicting one of two possible outcomes: fraudulent or not fraudulent. The other options are not suitable since streaming classification focuses on real-time data streams, multi-category classification involves more than two categories, and regression classification deals with predicting continuous values rather than discrete classifications.