An ML engineer is using Amazon SageMaker AI to train an ML model.

The requirement that each parameter trial is built based on the performance of the previous trial is the defining characteristic of Bayesian optimization. In Amazon SageMaker Automatic Model Tuning, Bayesian optimization uses prior trial results to intelligently select the next set of hyperparameters, making it far more efficient than grid or random search—especially in large, mixed search spaces.

This scenario includes both categorical (20) and continuous (7) hyperparameters and allows up to 1,000 training jobs, which is well within the supported limits of SageMaker AMT. Bayesian optimization natively supports mixed parameter types and is explicitly recommended by AWS for large, high-dimensional search spaces where exhaustive grid search is impractical.

Option A and D (grid search) do not meet the requirement because grid search evaluates combinations independently and does not learn from previous trials. Additionally, grid search becomes computationally infeasible as dimensionality increases.

Option B (random search) also evaluates trials independently and does not leverage previous results, violating the core requirement.

Therefore, defining both categorical and continuous parameters and using Bayesian optimization with a maximum of 1,000 jobs is the correct and AWS-recommended solution.