Microsoft Azure AI Fundamentals (AI-900) Practice Exam

What technique is used to predict sequential numerical data over time?

1. Classification

2. Regression

3. Time-series forecasting

4. Clustering

The correct answer is: Time-series forecasting

Time-series forecasting is specifically designed to predict sequential numerical data over time by identifying trends, seasonal patterns, and cycles within the data. This technique involves analyzing historical data points collected at specific time intervals, which can help in making future predictions based on observed patterns. Time-series forecasting is essential in various applications such as economic forecasting, stock market analysis, resource consumption forecasting, and many more. It allows organizations to make informed decisions based on anticipated future values derived from historical data trends, leading to proactive management and planning. Classification, regression, and clustering serve different purposes in data analysis. Classification is used for categorizing data into predefined classes; regression analyzes the relationship between variables for continuous outcomes; and clustering groups similar data points based on features. While regression can have applications in time-series analysis, time-series forecasting is distinct as it emphasizes the temporal aspect of data.