CPCU 500 Practice Exam 10

Big data includes Select one: A. Both structured and unstructured data. B. Unstructured data only. C. Neither structured nor unstructured data. D. Structured data only.

A. Both structured and unstructured data.

Nancy, the general liability claims manager, is concerned about a significant rise in claim frequency in the state of New Jersey during the past 18 months. She cannot identify the cause of the increase and has asked James, a data analyst, to help. James decides to develop a model to analyze the dataset of New Jersey claims, and see if any previously unknown grouping can be identified for further analysis. Which one of the following data analysis techniques is James using? Select one: A. Cluster analysis B. Classification tree C. Correlation matrix D. Linear regression analysis

A. Cluster analysis

Which one of the following is an example of exploratory data analysis? Select one: A. Correlation matrix B. Clustering C. Association rule learning D. Classification trees

A. Correlation matrix

Technological advancements have led to access to unprecedented volumes and types of data. Social media posts are an example of which one of the following types of data? Select one: A. External unstructured data B. Internal structured data C. Internal unstructured data D. External structured data

A. External unstructured data

Tom, the regional manager at Westfork Mutual, has planned a community service day for all employees. He has asked his two assistant managers, Julian and Leah, to spread the word to other employees and encourage them to attend. Based on centrality measures of the company's email traffic, Tom is confident that Julian will spread the word to more employees more quickly through email than will Leah. Tom's confidence is based on Julian's high score in which one of the following centrality measures? Select one: A. Degree B. Closeness C. Betweenness D. Association

B. Closeness

Which one of the following statements is most accurate? Select one: A. Most text is automatically meaningful to an algorithm. B. The text in organizational files, social media posts, news stories, consumer reviews, and so forth is not automatically meaningful to a machine or an algorithm. C. Text mining is only effective for structured data. D. Text in organizational files, social media posts, news stories, consumer reviews, and so forth is an example of structured data.

B. The text in organizational files, social media posts, news stories, consumer reviews, and so forth is not automatically meaningful to a machine or an algorithm.

Which one of the following is a characteristic that differentiates big data from traditional data? Select one: A. Privacy B. Velocity C. Structure D. Fraud

B. Velocity

The predictive approach to data-driven decision making would be most appropriate for which one of the following situations? Select one: A. A contractor is concerned about rising employee injuries at a jobsite. B. A restaurant is looking for a more reliable supplier of seafood. C. A transportation company is looking for a way to optimize routes and improve fuel efficiency. D. A marketing company is concerned about higher than average employee turnover at its Atlanta office.

C. A transportation company is looking for a way to optimize routes and improve fuel efficiency. A transportation company is looking for a way to optimize routes and improve fuel efficiency. A predictive data-driven approach would be appropriate in the transportation situation, because it is a business strategy decision that will likely be used repeatedly. The descriptive approach would be more appropriate for the contractor because it is a specific problem at a specific jobsite

Which one of the following is the first step in the text mining process? Select one: A. Create structured data from unstructured data (words) B. Create a model using data mining techniques C. Retrieve and prepare text with preprocessing techniques D. Evaluate the model

C. Retrieve and prepare text with preprocessing techniques

Tania works in the fraud unit for Greatview Insurance. There is a claimant who appears to be involved in multiple cases of insurance fraud. Tania decides to use social media to obtain information that may be used to develop a profile of the claimant. Tania's use of social media is an example of which one of the following types of data? Select one: A. Structured internal B. Structured external C. Unstructured external D. Unstructured internal

C. Unstructured external

The important first step in a decision-making model is to Select one: A. Assign a data scientist. B. Prepare the data. C. Purchase the technology. D. Define the problem.

D. Define the problem.

Which one of the following is a data analysis technique that operates in a way similar to the human brain? Select one: A. Social network analysis B. Clustering C. Regression D. Neural networks

D. Neural networks

If an insurer wants to determine the numerical value for a known target variable, it is most likely to use Select one: A. Cluster analysis. B. Association rule learning. C. A classification tree. D. Regression.

D. Regression.

Data analytics is especially useful for Select one: A. Structured data. B. Internal data. C. Databases. D. Unstructured data.

D. Unstructured data.

The descriptive approach is applied Select one: A. To process information received from the Internet of Things. B. When an insurer or risk manager is deciding what type of computer technology to purchase. C. Repeatedly to provide information for data-driven decision making. D. When an insurer or risk manager has a specific problem.

D. When an insurer or risk manager has a specific problem.