Optimization DY0-001 Practice Questions (Page 5)

Questions 21–22

1. 21application · medium

   A data science team is working on a project to reduce customer churn. They have built a model that predicts churn probability. The business wants to maximize the number of customers retained while keeping the total cost of retention offers under a fixed budget. What is the primary purpose of applying optimization in this context?

   • ATo improve the accuracy of the churn prediction model by tuning its hyperparameters.
   • BTo find the set of customers to target with offers that maximizes retention within the budget constraint.
   • CTo visualize the churn data to identify patterns in customer behavior.
   • DTo reduce the number of features in the churn model to make it simpler and faster.
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2. 22foundation · easy

   Which scenario is most appropriate for constrained optimization?

   • AMinimizing a loss function without any restrictions on the model parameters
   • BSelecting the best hyperparameters for a model using a grid search
   • CFinding the minimum of a function when the variables can take any real value
   • DMaximizing profit while ensuring that total production does not exceed factory capacity
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