Question 306 of 1,755
ModelingmediumMultiple ChoiceObjective-mapped

MLS-C01 Modeling Practice Question

This MLS-C01 practice question tests your understanding of modeling. Read the scenario carefully and evaluate each option against the stated constraints before committing to an answer. After answering, compare your reasoning against the explanation and wrong-answer breakdown below. Once you have made your selection, read the full explanation to reinforce the concept and understand why each distractor is designed to mislead on exam day.

A financial services company is building a fraud detection model using a large dataset of credit card transactions. The dataset contains 10 million rows with 50 features, including transaction amount, merchant category, time of day, and customer historical features. The label is binary: fraudulent (1% of data) or legitimate. The company wants to deploy a real-time inference endpoint using Amazon SageMaker that can score transactions with sub-100ms latency. The current model is a gradient boosting model (XGBoost) trained on a sample of 1 million rows due to memory constraints. The model achieves 0.95 AUC on a held-out test set but the fraud recall (sensitivity) is only 0.4, which is unacceptable because the cost of missing a fraud is high. The data science team has access to a larger compute instance (ml.m5.24xlarge) for training. Which course of action is most likely to improve fraud recall while maintaining latency requirements?

Clue words in this question

Noticing these words before you look at the options changes how you read each choice.

  • Clue: "most likely"

    Why it matters: Probability qualifier — the question wants the most probable cause or outcome, not a guaranteed one. Eliminate low-probability options.

Question 1mediummultiple choice
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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

Train the XGBoost model on the full 10 million rows using an ml.p3.2xlarge instance with GPU support, and apply SMOTE oversampling to the minority class before training.

Option A is correct because training on the full 10 million rows with a GPU-accelerated instance (ml.p3.2xlarge) allows the XGBoost model to learn from the complete data distribution, addressing the bias introduced by the 1 million row sample. Applying SMOTE oversampling to the minority class (fraud) directly tackles the class imbalance (1% fraud), which is the root cause of the low recall (0.4). SMOTE generates synthetic fraudulent examples, improving the model's ability to detect fraud without significantly increasing inference latency, as the model architecture and deployment remain unchanged.

Key principle: Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.

Answer analysis

Option-by-option breakdown

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

  • Train the XGBoost model on the full 10 million rows using an ml.p3.2xlarge instance with GPU support, and apply SMOTE oversampling to the minority class before training.

    Why this is correct

    Using a GPU instance allows training on the full dataset efficiently, and SMOTE oversampling balances the classes, directly improving recall.

    Clue confirmation

    The clue word "most likely" in the question point toward this answer.

    Related concept

    Read the scenario before looking for a memorised answer.

  • Engineer additional features from transaction time and merchant category, then retrain the XGBoost model on the same 1 million row sample.

    Why it's wrong here

    Feature engineering may help but does not address the data volume or class imbalance directly; the recall improvement may be insufficient.

  • Downsample the majority class to 1% of the original size to create a balanced dataset of 200,000 rows, then retrain the XGBoost model on this balanced sample.

    Why it's wrong here

    Downsampling discards most of the data, which can harm model performance and reduce recall due to loss of information.

  • Replace XGBoost with a logistic regression model trained on the full dataset, as linear models are faster to train and may generalize better on large data.

    Why it's wrong here

    Logistic regression is simpler and may not capture complex patterns needed for fraud detection, likely leading to even lower recall.

Common exam traps

Common exam trap: answer the scenario, not the keyword

The trap here is that candidates may choose downsampling (Option C) as a quick fix for class imbalance, overlooking that it discards valuable majority class data and can harm model generalization, while SMOTE (Option A) preserves data and synthetically balances the classes to improve recall without sacrificing latency.

Detailed technical explanation

How to think about this question

SMOTE (Synthetic Minority Oversampling Technique) works by interpolating between existing minority class samples in feature space, creating synthetic examples that are not simple duplicates, which helps the model learn more robust decision boundaries for the minority class. XGBoost with GPU support (using the `gpu_hist` tree method) can efficiently handle 10 million rows by leveraging parallel processing on the GPU, reducing training time significantly compared to CPU-based training. In real-world fraud detection, latency constraints (sub-100ms) are maintained because the trained XGBoost model's inference complexity depends on tree depth and number of trees, not on the training data size, so using the full dataset does not impact endpoint performance.

KKey Concepts to Remember

  • Read the scenario before looking for a memorised answer.
  • Find the constraint that changes the correct option.
  • Eliminate answers that are true in general but not in this case.

TExam Day Tips

  • Watch for words such as best, first, most likely and least administrative effort.
  • Review why wrong options are wrong, not only why the correct option is correct.

Key takeaway

Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.

Real-world example

How this comes up in practice

A startup's cloud architect reviews their monthly bill and notices costs are higher than expected for a long-running batch job. Switching from on-demand instances to Reserved Instances — or using Spot/Preemptible VMs — can reduce compute costs by up to 72 %. Questions like this test whether you understand the tradeoffs between commitment, flexibility, and cost across cloud pricing models.

What to study next

Got this wrong? Here's your next step.

Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.

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FAQ

Questions learners often ask

What does this MLS-C01 question test?

Modeling — This question tests Modeling — Read the scenario before looking for a memorised answer..

What is the correct answer to this question?

The correct answer is: Train the XGBoost model on the full 10 million rows using an ml.p3.2xlarge instance with GPU support, and apply SMOTE oversampling to the minority class before training. — Option A is correct because training on the full 10 million rows with a GPU-accelerated instance (ml.p3.2xlarge) allows the XGBoost model to learn from the complete data distribution, addressing the bias introduced by the 1 million row sample. Applying SMOTE oversampling to the minority class (fraud) directly tackles the class imbalance (1% fraud), which is the root cause of the low recall (0.4). SMOTE generates synthetic fraudulent examples, improving the model's ability to detect fraud without significantly increasing inference latency, as the model architecture and deployment remain unchanged.

What should I do if I get this MLS-C01 question wrong?

Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.

Are there clue words in this question I should notice?

Yes — watch for: "most likely". Probability qualifier — the question wants the most probable cause or outcome, not a guaranteed one. Eliminate low-probability options.

What is the key concept behind this question?

Read the scenario before looking for a memorised answer.

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Last reviewed: Jun 11, 2026

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This MLS-C01 practice question is part of Courseiva's free Amazon Web Services certification practice question bank. Courseiva provides original exam-style practice questions with explanations, topic-based practice, mock exams, readiness tracking, and study analytics to help learners prepare for the MLS-C01 exam.