$(6$ pts$)$ Explain whether each problem is a regression or classification. Each problem has $2$ points.

$1($a$).$ We collect data on the top $500$ firms in the US$.$ For each firm we record profit, number of

employees, and the CEO salary. We are interested in understanding which factors affect CEO salary.

$1($b$).$ We are considering launching a new product and wish to know whether it will be a success or a

failure. We collect data on $20$ similar products that were previously launched. For each product, we have

recorded whether it was a success or failure, price for the product, marketing budget, a competitor product

price, and ten other variables.

$1($c$).$ We are interested in predicting the $\%$ change in the USD$/$EUR exchange rate in relation to the

weekly changes in the world stock markets. Hence, we collect weekly data in $2012.$ For each week, we

record the $\%$ change in the USD$/$EUR$,$ the $\%$ change in the US stock market, the $\%$ change in the British

stock market, and the $\%$ change in the German stock market.