Question 1 of 30
In a retail scenario, a company utilizes machine learning algorithms to predict customer purchasing behavior based on historical data. The algorithm analyzes various features such as previous purchases, browsing history, and demographic information. If the model achieves an accuracy of 85% on the training dataset and 75% on the validation dataset, what can be inferred about the model\'s performance, and what steps should be taken to improve it?
The model may be overfitting, and techniques such as regularization or cross-validation should be employed to enhance generalization.
The model is performing optimally, and no further adjustments are necessary.
The model is underfitting, indicating that it requires more complex features to improve accuracy.
The model's performance is satisfactory, and it should be deployed without further testing.

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