You are a machine learning specialist working for a large retail clothing company. Your marketing department wants to leverage machine learning to understand product loyalty. Your machine learning team has decided to group the customers into categories based on which customers may churn, meaning abandon a given product for another, maybe a competitor’s product, within the next 6 months. You have labeled data for customer product loyalty for the previous two years available to you for training your model.
Which machine learning model type should you and your team use to build your customer loyalty model?

Answer options:

A.Linear regression using either the Linear Learner or XGBoost built-in SageMaker algorithms
B.Clustering using either the K-Means or K-Nearest Neighbors algorithms
C.Classification using either the Linear Learner or XGBoost built-in SageMaker algorithms
D.Reinforcement learning using SageMaker RL

Answer: C
Option A is incorrect. Because you have labeled data and you want to group your customers into categories, classification is a better choice than regression.
Option B is incorrect. Clustering is done using unlabeled data. You have labeled data. So you will get better results using a classification algorithm.
Option C is CORRECT. Since your data is labeled, you will get the best results using a classification algorithm when attempting to classify your customers.
Option D is incorrect. Reinforcement algorithms are used for solving problems such as supply chain management, HVAC systems, industrial robotics, game artificial intelligence, dialog systems, and autonomous vehicles. They attempt to learn a strategy. They are not well suited to grouping data elements into categories.
Reference:
Please see the Amazon SageMaker developer guide titled Use Amazon SageMaker Built-in Algorithms.
Please refer to the article titled Regression vs Classification in Machine Learning: What is The Difference?.
Please review the article titled How to Use Unlabeled Data in Machine Learning.
Please refer to the Amazon SageMaker developer guide titled Use reinforcement learning with Amazon SageMaker.