Microsoft Azure AI Fundamentals (AI-900) Practice Exam

What method is used to predict next month's store sales?

1. Natural language processing

2. Machine learning (Regression)

3. Computer vision

4. Anomaly detection

The correct answer is: Machine learning (Regression)

The method used to predict next month's store sales is machine learning, specifically regression techniques. Regression is a statistical approach utilized to understand the relationship between a dependent variable, in this case, store sales, and one or more independent variables, which could include factors such as historical sales data, promotions, seasonality, and economic indicators. By employing regression models, one can analyze past sales patterns and trends to make informed predictions about future sales figures. This is crucial for businesses to manage inventory, optimize staffing, and plan financial strategies. The regression approach in machine learning enables the model to learn from historical data, making it capable of forecasting future sales quantities with a certain level of accuracy. This predictive capability is essential for effective business operations and decision-making. Other methodologies like natural language processing, computer vision, and anomaly detection serve different purposes and are not directly applicable to the task of forecasting store sales based on historical data.