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AIF-C01 Practice Question: A data scientist needs to predict whether a…

A data scientist needs to predict whether a transaction is fraudulent (Yes/No). Which type of machine learning problem is this?

⚠ Common exam trap

The AWS AI Practitioner exam often tests the distinction between supervised and unsupervised learning, and the trap here is confusing classification (supervised, discrete output) with clustering (unsupervised, no labels) because both involve grouping or categorizing data.

Answer choices

Why each option matters

Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.

Correct answer & explanation

✓

Classification

This is a classification problem because the output is a discrete category (fraudulent or not). The data scientist is predicting a binary label (Yes/No), which is the defining characteristic of binary classification in supervised learning.

Answer analysis

Option-by-option breakdown

For each option: why learners choose it and why it is or isn't the right answer here.

  • ✓

    Classification

    Why this is correct

    Predicting a discrete Yes/No label means the target variable is categorical, which is supervised classification. Regression would output a continuous value, and clustering is unsupervised, so neither fits the fraudulent-or-not constraint. Classification models learn a decision boundary separating the two classes.

  • ✗

    Clustering

    Why it's wrong here

    Clustering is unsupervised, grouping unlabelled data by similarity, so it cannot assign the Yes/No fraud label the stem requires. It is tempting because clustering can surface anomalous transaction patterns, but it would be correct only for exploratory segmentation without predefined fraud labels.

  • ✗

    Regression

    Why it's wrong here

    Regression predicts continuous numeric values, not discrete Yes/No class labels, so it cannot output the fraud classification required. It is tempting because regression and classification share supervised learning, and regression suits predicting transaction amount, but the stem demands a binary category.

  • ✗

    Reinforcement learning

    Why it's wrong here

    Reinforcement learning trains an agent through reward signals from sequential environment interaction, not from a labelled fraud dataset, so it cannot predict Yes/No directly. It is tempting because fraud detection can be framed as sequential decision-making, but supervised classification matches this labelled binary prediction task.

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Written by Johnson Ajibi, MSc IT Security

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