Supervised or unsupervised

Supervised learning learns from examples with answers; unsupervised learning finds patterns without them.

• Supervised: past loans marked 'repaid' or 'defaulted' → predict new ones.
• Regression predicts a number; classification predicts a category.
• Unsupervised: group similar customers with no labels (clustering).

Example: Predict house price → regression. Spam or not → classification. Find customer groups → clustering.

Remember: Have the answers in your data? Supervised. Don't? Unsupervised.

Common mistake: Calling price prediction 'classification'. A number means regression.