Microsoft Azure AI Fundamentals (AI-900) Practice Exam

Is forecasting housing prices based on historical data a valid example of anomaly detection?

1. Yes

2. No

3. Only in certain cases

4. It depends on the data source

The correct answer is: No

Forecasting housing prices based on historical data is primarily focused on predicting future trends and patterns rather than identifying irregular or outlier data points within the existing dataset. Anomaly detection typically aims to identify data points that significantly differ from the majority of data, indicating unusual behavior that requires further investigation. In contrast, forecasting analyzes historical trends to generate predictions, without specifically targeting any anomalies present in the dataset. This distinction makes the assertion that forecasting housing prices is an example of anomaly detection inaccurate. Hence, the most relevant answer is that it is not a valid example of anomaly detection.