Which recommendation algorithm famously powered Netflix's $1 million prize competition that sought to improve their recommendation accuracy by 10%?

Recommendation systems have transformed the retail landscape by personalizing the shopping experience and boosting sales through targeted suggestions. These intelligent systems analyze customer data, purchase history, browsing behavior, and more to predict what products a customer might want next. How well do you understand the technology powering these seemingly magical product suggestions that drive significant revenue for e-commerce giants?

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Matrix Factorization
Random Forest Classification
K-Nearest Neighbors (KNN)
Gradient Boosting Decision Trees