# AI-900: How to use regression models to predict daily demand for a toy company

Learn how to use regression models, a type of machine learning model that predicts a continuous numerical value, to predict the daily demand for a toy company based on the factors that influence the demand.

## Question

A toy company wants to predict the daily demand in order to assure that they have the necessary stock to honour all orders. What machine learning model can be used in this case?

A. Classification
B. Clustering
C. Regression

C. Regression

## Explanation

Regression is a supervised machine learning technique used to predict numeric values.

The correct answer is C. Regression. Regression is a type of machine learning model that predicts a continuous numerical value based on the input features. In this case, the toy company wants to predict the daily demand, which is a numerical value, based on the factors that influence the demand, such as season, price, promotion, etc. Regression models can be used to estimate the relationship between the input features and the output value, and use that relationship to make predictions for new data.

Classification is a type of machine learning model that predicts a discrete categorical value based on the input features. For example, a classification model can be used to predict whether an email is spam or not, based on the content, sender, subject, etc. Classification models are not suitable for predicting numerical values.

Clustering is a type of machine learning model that groups similar data points together based on their features. For example, a clustering model can be used to segment customers based on their preferences, behavior, demographics, etc. Clustering models are not suitable for predicting numerical values.

Microsoft Azure AI Fundamentals AI-900 certification exam practice question and answer (Q&A) dump with detail explanation and reference available free, helpful to pass the Microsoft Azure AI Fundamentals AI-900 exam and earn Microsoft Azure AI Fundamentals AI-900 certification.

### Alex Lim

Alex Lim is a certified IT Technical Support Architect with over 15 years of experience in designing, implementing, and troubleshooting complex IT systems and networks. He has worked for leading IT companies, such as Microsoft, IBM, and Cisco, providing technical support and solutions to clients across various industries and sectors. Alex has a bachelor’s degree in computer science from the National University of Singapore and a master’s degree in information security from the Massachusetts Institute of Technology. He is also the author of several best-selling books on IT technical support, such as The IT Technical Support Handbook and Troubleshooting IT Systems and Networks. Alex lives in Bandar, Johore, Malaysia with his wife and two chilrdren. You can reach him at [email protected] or follow him on Website | Twitter | Facebook