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AI0-001 AI Concepts and Techniques Practice Question

A data scientist is building a model to predict whether a credit card transaction is fraudulent, using labeled historical data. Which machine learning paradigm is being used?

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

Supervised learning

Supervised learning uses labeled data to train a model to map inputs to outputs. Fraud detection with historical labels is a classic binary classification problem.

Answer analysis

Option-by-option breakdown

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

  • Reinforcement learning

    Why it's wrong here

    Reinforcement learning uses rewards/penalties from interactions; this is not the case here.

  • Unsupervised learning

    Why it's wrong here

    Unsupervised learning works with unlabeled data; here labels are available.

  • Supervised learning

    Why this is correct

    The model is trained on labeled data (fraud vs. legitimate) to predict outcomes, which is supervised learning.

  • Self-supervised learning

    Why it's wrong here

    Self-supervised learning creates labels from data itself; here labels are provided externally.

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