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MLS-C01 Modeling Practice Question

A data scientist is building a binary classification model to predict customer churn. The dataset has 10,000 samples with 500 churners (positive class). Which TWO techniques should be used to address the class imbalance? (Choose 2.)

⚠ Common exam trap

The MLS-C01 exam often tests the misconception that regularization or dimensionality reduction can fix class imbalance, but these techniques address overfitting or computational efficiency, not skewed class distributions.

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

Use random undersampling of the majority class

Random undersampling of the majority class (Option C) reduces the number of non-churner samples to balance the dataset, preventing the model from being biased toward the majority class. SMOTE (Option D) generates synthetic samples for the minority class by interpolating between existing minority instances, which increases the representation of churners without simply duplicating data. Both techniques directly address class imbalance by modifying the training data distribution.

Answer analysis

Option-by-option breakdown

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

  • Use a higher learning rate during training

    Why it's wrong here

    Learning rate does not fix imbalance.

  • Use L1 regularization on the model

    Why it's wrong here

    L1 regularization helps feature selection, not imbalance.

  • Use random undersampling of the majority class

    Why this is correct

    Undersampling reduces majority class samples, balancing the dataset.

  • Use SMOTE to generate synthetic samples for the minority class

    Why this is correct

    SMOTE creates synthetic minority samples, reducing imbalance.

  • Use principal component analysis (PCA) to reduce dimensionality

    Why it's wrong here

    PCA does not address class imbalance.

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Last reviewed: Jul 4, 2026

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