Exam 3: Modeling and Evaluation: Going From Defining Business Problems and Data Understanding to Analyzing Data and Answering Questions

Which of the following best describes an unsupervised approach to the evaluation of data?

XBRL is a global standard for exchanging financial reporting information that uses XML.

Understanding and predicting warranty expense is an important determination for manufacturing firms.When using historical claims data to estimate the current period's warranty expense,the historical claims data represents which of the following?

Fuzzy matching is a computer-assisted technique of finding matches that are less than 100 percent perfect by finding correspondences between portions of the text of each potential match.

Regression analysis typically involves the following steps except:

Link prediction is a data approach used to estimate or predict,for each unit,the numerical value of some variable using some type of statistical model.

Which of the following best describes an independent variable?

One of the key tasks of bank auditors is to consider the amount of the loan loss reserve.When developing a model to estimate the current year's loan loss reserve amount,which of the following would be least likely to be included as an independent variable?

Assume that you will be up for a promotion next month and you'd like to impress your boss with your data analytic skills.The company you work for normally books the current month's bad debit for the same amount as the prior month's actual accounts receivable write-offs.Using your general accounting knowledge,explain why this process is not the best method.Next,assuming that you will use a regression analysis,explain the process and describe the data/information you would request/include to perform the analysis.

Which approach to data analytics attempts to characterize the typical behavior of an individual,group or population by generating summary statistics about the data?

An example of classification would be a credit card company flagging a transaction as being approved or potentially being fraudulent and denying payment.

Using social media to look for relationships between related parties that are not otherwise disclosed to identify related party transactions is an example of ________.

Co-occurrence grouping is an example of a supervised approach.

Co-occurrence grouping could be used to match vendors by geographic region.

In general,the more complex the model,the greater the chance of ________.

________ mark the split between one class and another.

When considering a question such as "Do our customers form natural groups based on similar attributes?" you would use an unsupervised approach.

Benford's Law is an absolute and all data must conform.

Decision trees are used to divide data into smaller groups by splitting the data at each branch into two or more groups.However,this method could lead to unintended consequences if the decision tree is not pruned.Describe the pruning process,when it can occur and the benefits of using it.

All of the following are examples of an unsupervised approach to evaluation data except: