Question 1

Which of the following statements is true about ODBC?

Accepted Answer

A) It allows use of the powerful SQL language for searching and filtering of the data. 
B) It is generally slower and less robust than text files. 
C) IT departments are very comfortable in giving out ODBC connections. 
D) It is an application-level setting rather than a systemwide setting.

Question 2

Which of the following statements is true about the characteristics of real-time analysis?

Accepted Answer

A) With real-time analysis in place, there is no need for continual improvement and updating of indicators. 
B) It is a distinct technique because it specifically analyzes each transaction for correctness rather than for fraud. 
C) It does not allow real-time modification and deletion of less-effective indicators. 
D) Indicators are hard-coded into the system.

Question 3

One of the disadvantages of Benford's law in detecting fraud is:

Accepted Answer

A) potential suspects are more likely to know you are trying to detect fraud than if you use such detection techniques. 
B) users must be thoroughly trained in its complexities to implement and use. 
C) that those cases with the lowest probabilities do not match Benford's law and may need further investigation. 
D) it only broadly identifies the possible existence of fraud; it fails to narrow possibilities to a manageable field of promising leads.

Question 4

According to Benford's law,5 will be the first digit of a random number set:

Accepted Answer

A) more often than 1. 
B) less often than 4. 
C) about the same as 6. 
D) more often than 3.

Question 5

Which of the following is a commercial data-mining software?

Accepted Answer

A) ACL 
B) QuickBooks 
C) Peachtree 
D) Excel

Question 6

Benford's law:

Accepted Answer

A) applies to numbers that have built-in limits. 
B) is most effectively used with assigned numbers. 
C) applies best to numbers that occur naturally. 
D) uses ratios to detect fraud.

Question 7

What is the primary advantage of the data-driven approach?

Accepted Answer

A) The investigator makes hypotheses and tests to see if each one holds true. 
B) It is less expensive and time intensive than the traditional approach. 
C) The investigator takes charge of the fraud investigation process. 
D) Data-driven fraud detection is proactive in nature.

Question 8

Specific implementations of delimited text are called TSV.What does TSV stands for?

Accepted Answer

A) toxicity screening value 
B) time segmented volume 
C) tab separated values 
D) tactical secure voice

Question 9

Which of the following is similar to ACL and its primary competitor?

Accepted Answer

A) Picalo 
B) IDEA 
C) Microsoft Office + ActiveData 
D) Z-score

Question 10

While methods like high-low slope,average slope,handshaking,and Box-Jenkins exist,one of the most popular techniques for summarizing the slope of a graph is _______ .

Accepted Answer

A) summarization 
B) stratification 
C) statistical regression. 
D) arithmetic progression

Exam 6: Data-Driven Fraud Detection