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MLS-C01 Exploratory Data Analysis Practice Question

A machine learning engineer is performing exploratory data analysis on a dataset containing customer transactions. They notice that the target variable is highly imbalanced: 99% of samples belong to class 0 and 1% to class 1. Which technique should they use to address this imbalance before training a classification model?

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

Apply SMOTE to generate synthetic samples for the minority class.

SMOTE (Synthetic Minority Over-sampling Technique) generates synthetic samples for the minority class, which helps balance the dataset and improves model performance on the minority class without losing information from the majority class. Option A is wrong: training on raw data without addressing imbalance will cause the model to be biased toward the majority class and perform poorly on the minority class. Option C is wrong: accuracy is not a suitable evaluation metric for imbalanced datasets because a model that always predicts the majority class will achieve 99% accuracy, masking poor performance on the minority class; instead, metrics like precision, recall, F1-score, or AUC should be used. Option D is wrong: under-sampling the majority class to match the minority class size discards a large amount of data, potentially losing valuable patterns and reducing model performance.

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 model on the raw data without any modification.

    Why it's wrong here

    Without addressing imbalance, the model will likely perform poorly on the minority class.

  • Apply SMOTE to generate synthetic samples for the minority class.

    Why this is correct

    SMOTE creates synthetic minority samples, helping balance the dataset.

  • Use accuracy as the evaluation metric and train on the raw data.

    Why it's wrong here

    Accuracy is misleading for imbalanced data; precision-recall or AUC is better.

  • Under-sample the majority class to match the minority class size.

    Why it's wrong here

    Under-sampling may discard valuable majority class information.

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