Question

A retail analytics team has millions of customer transaction records but no predefined categories or labels. They want to discover natural groupings of customers based on purchasing behavior to inform marketing segments. Which machine learning approach best fits this task?

Accepted Answer

Unsupervised learning using a clustering algorithm

Answer

Supervised learning using a classification model trained on labeled categories

Answer

Reinforcement learning with a reward function for each purchase

Answer

Supervised learning using a regression model to predict transaction amounts