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What is a common application of supervised learning in finance?
What is a common application of supervised learning in finance?
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What is a common application of supervised learning in finance?
Stock price prediction
Image recognition
Customer segmentation
Anomaly detection
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Supervised learning is often used in finance for stock price prediction, where historical data is used to predict future prices.
Questions & Step-by-step Solutions
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Q: What is a common application of supervised learning in finance?
Solution:
Supervised learning is often used in finance for stock price prediction, where historical data is used to predict future prices.
Steps: 6
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Step 1: Understand what supervised learning is. It is a type of machine learning where a model is trained using labeled data.
Step 2: Identify the field of finance where supervised learning can be applied.
Step 3: Recognize that one common application is predicting stock prices.
Step 4: Learn that to predict stock prices, historical data (like past prices) is collected.
Step 5: Use this historical data to train a model, which learns patterns and relationships.
Step 6: Once trained, the model can make predictions about future stock prices based on new data.
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