Question: You work for a large credit card processing company that wants to create targeted promotions for its customers. The data science team created a machine learning system that groups together customers who made similar purchases, and divides those customers based on customer loyalty. How would you describe this machine learning approach?

1. It uses unsupervised learning to cluster together transactions and unsupervised learning to classify the customers.
2. It uses only unsupervised machine learning.
3. It uses supervised learning to create clusters and unsupervised learning for classification.
4. It uses reinforcement learning to classify the customers.

Answer: The correct answer of the above question is Option A:It uses unsupervised learning to cluster together transactions and unsupervised learning to classify the customers.