Which of the following best describes a challenge of hierarchical classification in business contexts?

Hierarchical classification can be difficult because a mistake at a higher level in the tree automatically forces all lower‑level predictions to be wrong, so a single error can cascade and hurt many decisions. This means that errors are not isolated, making it hard to pinpoint and correct mistakes. Additionally, business data often have uneven class sizes, so the model can become biased toward the larger categories. For example, if a company classifies products as “Electronics” → “Computers” → “Gaming Laptops,” a mistake at the “Electronics” level will misclassify every product that should be a laptop, even if the lower levels are correct.