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A company has petabytes of unlabeled customer data to use for an advertisement campaign. The company wants to classify its customers into tiers to advertise and promote the company's products.
Which methodology should the company use to meet these requirements?
Explanation:
Unsupervised learning is the correct methodology for this scenario because:
Unlabeled Data: The company has "petabytes of unlabeled customer data." Unsupervised learning algorithms work with unlabeled data to find patterns, structures, or groupings within the data.
Customer Classification/Tiering: The goal is to "classify its customers into tiers." This is a classic clustering problem where unsupervised learning algorithms like K-means, hierarchical clustering, or DBSCAN can group similar customers together based on their characteristics without predefined labels.
Why Not Other Options:
Key Takeaway: When you have unlabeled data and need to discover patterns or groupings within it, unsupervised learning is the appropriate machine learning approach.