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5. Trilok has collected a large number of stamps for his collection but does not know how to group them
into different categories. Which machine learning algorithm would help him achieve his task?

a. Clustering b. Classifi cati on
c. Regression d. Associati on

Case Study Based Questions

1. AI in Smart Homes - Virtual Assistants

A smart home company is developing a voice-activated virtual assistant that understands and responds
to user commands. The company wishes to create a model to recognise the spoken command and also
to understand the emotions behind the spoken words, which will help the assistant to respond more
efficiently and provide more relevant content. Based on the information given, answer the following
questions:

a. What type of AI model enables the assistant to recognise voice commands accurately?
b. Which domain of AI will help the model to recognise the words and the context
behind the words?

c. How does reinforcement learning improve the assistant’s ability to interact with users?
2. AI in Finance - Stock Market Prediction

A hedge fund is an investment fund that pools money from investors to invest in securities and other
assets. Hedge funds use a variety of strategies to generate returns for their investors. As the financial
market is highly volatile, predicting trends in stock markets and securities is a challenge. A leading hedge
fund company wishes to develop an AI model to predict stock price movements based on historical price
trends and market news. Based on the information given, answer the following questions:

a. Should the model use classifi cati on or regression? Explain your choice.
b. Name some factors that might cause the AI model to struggle with long-term stock market predicti ons?

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