Question 1
An ML engineer at a credit card company built and deployed an ML model by using Amazon SageMaker AI. The model was trained on transaction data that contained very few fraudulent transactions. After deployment, the model is underperforming.
What should the ML engineer do to improve the model's performance?
This is a classic class imbalance problem, where fraudulent transactions (minority class) are severely underrepresented. AWS documentation for SageMaker Data Wrangler recommends SMOTE (Synthetic Minority Oversampling Technique) as an effective approach for improving model performance in such scenarios.
SMOTE generates synthetic minority samples by interpolating between existing minority class examples. This improves the model's ability to learn decision boundaries without simply duplicating data, which can cause overfitting.
Random undersampling removes valuable majority class data, reducing overall model robustness. Random oversampling duplicates data and increases overfitting risk. Changing algorithms does not address the root cause.
AWS best practices highlight SMOTE as the preferred technique for fraud detection and other highly imbalanced datasets.
Therefore, Option C is the correct and AWS-verified answer.
