Account analytics
True or false: Classification requires that we know a great deal about the observation that we're attempting to place in a class.
False
True or false: When clustering works well, observations within a segment should be different, and the data across segments should be very similar.
False
_____ looks for similarities between portions, or segments, of the text of each potential match.
Fuzzy match
Classification predicts a class for a new observation based on the identification of classes from previous observations.
Manual
After you have identified the classes you wish to predict, what is the next step?
Manually classify an existing set of records.
Using a classification model, you can predict a new vendor belongs to one class or another based on the behavior of others.
Whether
A specific type of data profiling that is used to look for correspondences between portions, or segments, of text for potential matches is called match.
fuzzy
A decision is a tool used to divide data into smaller groups. Decision is a technique used to mark the split between one class and another.
tree boundaries
A/an approach is used when you don't have a specific question and are simply exploring the data for potential patterns of interest.
unsupervised
Clustering is a/an method that is used to find natural groupings within the data.
unsupervised
In the example regarding the LendingClub data in which the analyst is researching loan rejection, they identified three possible indicators for why a loan would be rejected, the debt-to-income ratio, length of employment, and credit [risk] score. Which is the response variable?
Loan rejection
is an observation about the frequency of leading digits in many real-life sets of numerical data.
Benford's law
After you have identified the attribute you would like to reduce or focus on, what is the next step?
Filter the results.
Place the steps of profiling in order, from 1 through 5.
Identify the objects or activity you want to profile. Determine the types of profiling you want to perform. Set boundaries or threshold for the activity interpret the results and monitor the activity. follow up on exceptions
What is the terminology for the items that are useful for ranking observations rather than simply predicting class probability?
Linear classifiers
data are existing data that have been manually evaluated and assigned a class. data are existing data used to evaluate the model.
Training test
In the following question, what would be the target? Given a set of customer data, we are trying to predict the total transaction amount based on a variety of attributes.
Transaction amount
Machine learning, artificial intelligence and decision support systems are all examples of _____ analytics
prescriptive
Decision support systems are an example of _____.
prescriptive analytics
A/an approach is used when you are performing analysis that uses historical data to predict a future outcome based on a specific question.
unsupervised
Profiling is a/an method that is used to discover patterns of behavior, based on the distance of z-scores from the mean.
unsupervised
Knowing the mean and standard deviation, and assuming a normal distribution, one can compute which statistic that can be used to identify abnormal transactions
z-score
What is XBRL used for?
to facilitate the exchange of financial reporting information between a company and the SEC.
Any transaction that has a Z-score of ____ or above would represent abnormal transactions
3
Select the correct definition of class.
A manually assigned category applied to a record based on an event.
In the example regarding the LendingClub data in which the analyst is researching loan rejection, they identified three possible indicators for why a loan would be rejected, the debt-to-income ratio, length of employment, and credit [risk] score. Which of the following is/are the explanatory variable(s)?
Credit [risk] score Length of employment Debt-to-income ratio
______ are designed to be interactive and adapt to the information collected by the user.
Decision support systems
are designed to be interactive and adapt to the information collected by the user.
Decision support systems
After you have identified the objects or activity you wish to profile, what should you do next?
Determine the types of profiling you want to perform.
In the example provided in the text regarding employee turnover, the analyst is trying to predict employee turnover based on current professional salaries, health of the economy (GDP), and salaries offered by other accounting firms. In this scenario, what is the response variable
Employee Turnover
Which of the following is true regarding the profiling approach?
It is generally performed on data that is readily available
Which of the following is true regarding the Data Reduction approach?
It primarily uses structured data that is readily searchable.
might be used to identify areas where there is a lack of controls, changes in procedures, or individuals more willing to spend excessively in potential types of T&E expenses which might be associated with higher risk.
Profiling
What is the terminology for removing branches from a decision tree to avoid overfitting the model
Pruning
What is the terminology for removing branches from a decision tree to avoid overfitting the model?
Pruning
What is the purpose of profiling?
To gain an understanding of a typical behavior of an individual, group, population, or sample.
What is the purpose of clustering?
To identify groups of similar data elements and the underlying drivers of these groups.
What is the purpose of classification?
To predict which class an observation that we know little about will belong to.
Variance analysis, a common practice in management accounting, is an example of _____ analytics.
diagnostic
A target is an expected attribute or value that you want to .
evaluate
Generally the more complex and complete the model, the higher degree of the model _____ the data
overfitting
Profiling is a/an unsupervised method that is used to discover of behavior, based on the distance of z-scores from the mean.
patterns
In the profiling example regarding T&E Expenses, which of the following is NOT one of the areas that the analyst would try to uncover
significant variances in standard cost
_____ include both unsupervised exploratory analysis and supervised model generation to provide insight and predictive foresight into the business and decisions made by accountants and auditors.
Machine learning and artificial intelligenc
What body mandates submission of XBRL to facilitate the exchange of financial reporting information?
Securities and Exchange Commission
Benford's law states that in many naturally occurring collections of numbers, the significant leading digit is likely to be ______.
Small
In the example of profiling for management accounting regarding Advanced Environmental Recycling Technologies, what are they looking for significant variances in?
Standard Cost
A class is a manually assigned applied to a record based on an event.
category
Classification is a method that can be used to predict the of a new observation.
class or catergory
When evaluating classifiers, you need to be careful to strike a balance between what two things?
complexity of the model and accuracy of the classification
In the example provided in the text regarding employee turnover, the analyst is trying to predict employee turnover based on current professional salaries, health of the economy (GDP), and salaries offered by other accounting firms. In this scenario, what is the response variable?
employee turnover
Clustering is an unsupervised method that is used to find natural within the data.
group
In the example provided in the text regarding employee turnover, the analyst is trying to predict employee turnover based on current professional salaries, health of the economy (GDP), and salaries offered by other accounting firms. In this scenario, select the explanatory variable(s).
health of the economy salaries offered by other accounting firms