most likely to become acquisition targets

问题如下：

Paul suggests the following step which would be repeated every quarter.

Step 3 For each of the 20 different groups, we use labeled data to train a model that will predict the five stocks (in any given group) that are most likely to become acquisition targets in the next one year.

The target variable for the labelled training data to be used in Step 3 is most likely which one of the following?

选项：

A.

A continuous target variable

B.

A categorical target variable

C.

An ordinal target variable

解释：

B is correct. To predict which stocks are likely to become acquisition targets, the ML model would need to be trained on categorical labelled data having the following two categories: “0” for “not acquisition target”, and “1” for “acquisition target”.

A is incorrect, because the target variable is categorical, not continuous.

C is incorrect, because the target variable is categorical, not ordinal (i.e., 1st, 2nd, 3rd, etc.).