The best solution to meet the requirements is to apply Synthetic Minority Oversampling Technique (SMOTE) to the training dataset before training. SMOTE is a technique that generates synthetic samples for the minority class by interpolating between existing samples. This can help balance the class distribution and provide more information to the model. SMOTE can improve the performance of the model on the minority class, which is the class of interest in churn prediction. SMOTE can be applied using the SageMaker Data Wrangler, which provides a built-in analysis for oversampling the minority class1.

The other options are not effective solutions for the problem. Applying anomaly detection to remove outliers from the training dataset before training may not improve the model’s accuracy, as outliers may not be the main cause of the false results. Moreover, removing outliers may reduce the diversity of the data and make the model less robust. Applying normalization to the features of the training dataset before training may improve the model’s convergence and stability, but it does not address the class imbalance issue. Normalization can also be applied using the SageMaker Data Wrangler, which provides a built-in transformation for scaling the features2. Applying undersampling to the training dataset before training may reduce the class imbalance, but it also discards potentially useful information from the majority class. Undersampling can also result in underfitting and high bias for the model.