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