A financial company wants to flag all credit card activity as possibly fraudulent or non-fraudulent based on transaction data. Which type of ML model meets these requirements?

The correct answer is C. Binary classification. Binary classification models are designed to distinguish between two classes - fraudulent versus non-fraudulent transactions - making them the appropriate choice for this use case.

Submitted by obi.ng· Mar 30, 2026Fundamentals of AI and ML

Question

Options

ARegression
BDiffusion
CBinary classification
DMulti-class classification

How the community answered

(50 responses)

A
6% (3)
B
16% (8)
C
74% (37)
D
4% (2)

Explanation

Binary classification models are designed to distinguish between two classes - fraudulent versus non-fraudulent transactions - making them the appropriate choice for this use case.

Topics

#binary classification#fraud detection#supervised learning#ML model types

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