If tasked with predicting stock market trends, what kind of machine learning approach would you consider and what factors would influence your choice?
- K-Nearest Neighbors
- Principal Component Analysis
- Random Forest
- Time Series Analysis
Time series analysis would be a suitable approach for predicting stock market trends. Stock prices exhibit temporal patterns, and time series models, such as ARIMA or LSTM, can capture these patterns effectively. K-Nearest Neighbors, principal component analysis, and random forest are not specifically designed for time-dependent data like stock prices.
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