Question

What type of machine learning technique would you use to forecast sales (Y) of aluminum siding for houses using macroeconomic variables as input (i.e., unemployment rates, interest rates, and gross domestic product)?

a. Unsupervised learning

b. Supervised learning

c. Reinforcement learning

d. None of these

Answer 1

option B Supervised learning is correct

Through the learning process, the model analyses all the variables that affect sales (prices, traffic, etc.) and outputs a function describing sales. After the algorithm has completed the training and showed sufficient accuracy of the forecast, it can be used to recommend which values should be taken in the future to maximize sales.