A large consumer goods manufacturer has the following products on sale:
•34 different toothpaste variants
•48 different toothbrush variants
•43 different mouthwash variants
The entire sales history of all these products is available in Amazon S3. Currently, the company is using custom-built autoregressive integrated moving average (ARIMA) models to forecast demand for these products. The company wants to predict the demand for a new product that will soon be launched.
Which solution should a Machine Learning Specialist apply?
- Train a custom ARIMA model to forecast demand for the new product.
- Train an Amazon SageMaker DeepAR algorithm to forecast demand for the new product.
- Train an Amazon SageMaker k-means clustering algorithm to forecast demand for the new product.
- Train a custom XGBoost model to forecast demand for the new product.
Answer(s): B
Explanation:
The Amazon SageMaker DeepAR forecasting algorithm is a supervised learning algorithm for forecasting scalar (one-dimensional) time series using recurrent neural networks (RNN). Classical forecasting methods, such as autoregressive integrated moving average (ARIMA) or exponential smoothing (ETS), fit a single model to each individual time series. They then use that model to extrapolate the time series into the future.
Reference:
https://docs.aws.amazon.com/sagemaker/latest/dg/deepar.html
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