Question 1
You are an ML engineer at a large grocery retailer with stores in multiple regions. You have been asked to create an inventory prediction model. Your model’s features include region, location, historical demand, and seasonal popularity. You want the algorithm to learn from new inventory data on a daily basis. Which algorithms should you use to build the model?
Answer and explanation
Correct answer: C
Predicting inventory from region, location, historical demand and seasonal popularity is a supervised forecasting problem over time-ordered data. Recurrent neural networks (for example, LSTMs) model temporal dependencies such as seasonality and trends, and the model can be retrained daily on the newest inventory data. Reinforcement learning learns a policy for taking actions from reward signals rather than predicting a labeled quantity, classification predicts discrete classes rather than a demand quantity, and CNNs are designed for spatial (image-like) data.


