Which analysis type relies on transaction data and identifies associations?

Market basket analysis is the correct choice because it specifically focuses on identifying associations between items purchased together in transaction data. This type of analysis uncovers relationships and patterns that occur frequently in market transactions, enabling businesses to understand consumer behavior, optimize product placements, and formulate cross-selling strategies.

For example, if customers frequently buy bread and butter together, market basket analysis will highlight this association, allowing retailers to make informed decisions on product placements or promotional strategies. This analysis is a key technique in the field of data mining, particularly in retail environments where understanding customer purchasing behavior is vital.

The other types of analysis mentioned do not primarily focus on transaction data and associations in the same way. Regression analysis is used to model relationships between variables and predict outcomes. Cluster analysis groups similar items or observations but does not focus on associations within transaction data. Sequence analysis examines ordered events or patterns over time rather than associations between items.