Question

    Machine Learning Which Machine Learning model is best

    suited for predicting stock market trends based on sequential time-series data?
    A Logistic Regression Correct Answer Incorrect Answer
    B Convolutional Neural Network (CNN) Correct Answer Incorrect Answer
    C Recurrent Neural Network (RNN) Correct Answer Incorrect Answer
    D K-Nearest Neighbors (KNN) Correct Answer Incorrect Answer
    E Support Vector Machine (SVM) Correct Answer Incorrect Answer

    Solution

    Recurrent Neural Networks (RNNs) are a specialized form of neural networks designed to handle sequential data and time dependencies. They are ideal for time-series data, such as stock market trends, where the order of input data is crucial. RNNs utilize feedback loops in their architecture, allowing information from previous time steps to influence the current output. Advanced RNN variants, such as Long Short-Term Memory (LSTM) networks, effectively address issues like vanishing gradients, ensuring long-term dependencies in data are captured. This makes RNNs a cornerstone of financial forecasting, speech recognition, and natural language processing tasks. Why Other Options Are Incorrect:      

    • A) Logistic Regression is a binary classification algorithm and does not handle sequential dependencies.
    • B) CNNs are excellent for image processing but are not inherently designed for temporal or sequential data.
    • D) KNN is a simple distance-based algorithm that lacks the capacity to model temporal dependencies effectively.
    • E) SVM is a powerful classification and regression tool but does not have native support for sequential time-series modeling.

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