ACCT 4240A Chapter 12 Emerging Technologies: Blackchain and AI Automation

What is a smart contract used in a blockchain network? -A smart contract defines the digital assets that could be transferred in transactions. -A smart contract defines the terms and business rules to be used in conducting transactions. -A smart contract is written in software code. -A smart contact defines the transaction rules in Bitcoin.

-A smart contract defines the digital assets that could be transferred in transactions. -A smart contract defines the terms and business rules to be used in conducting transactions. -A smart contract is written in software code.

What are the potential impacts of blockchain on accounting and audit practice? -Blockchain technology increases the possibility of conducting continuous audit. -Auditors will not need to audit blockchain transactions since transactions cannot be modified or deleted. -Auditors will need to review business rules coded in smart contracts.

-Auditors will need to review business rules coded in smart contracts. -Blockchain technology increases the possibility of conducting continuous audit.

Select the correct statements about Ethereum. -It is a more robust application of blockchain technology to include business rules. -It uses "smart contracts" to code the logic for transactions. -For most companies, Ethereum platform is more useful than Bitcoin to conduct/record different types of transactions. -The cost to implement Ethereum is cheaper than Bitcoin.

-It is a more robust application of blockchain technology to include business rules. -It uses "smart contracts" to code the logic for transactions. -For most companies, Ethereum platform is more useful than Bitcoin to conduct/record different types of transactions.

______ ______ published a white paper in 2008 to introduced a concept on distributed ledger system which is the foundation of the blockchain technology.

-Satoshi -Nakamoto

List the key characteristics of blockchain technology: distributed and decentralized, ______ and ______.

-consensus -immutability

List the three types of blockchain: ______ blockchain, ______ blockchain, and ______ blockchain.

-public -private -consortium

If a confusion matrix shows 25 TP, 5 FN, 1000 TN, and 5 FP, what is the recall ratio? (Round your answer to 2 decimal places.) -0.90 -0.92 -0.99 -0.83 -None of these choices are correct.

0.83 (TP+FN)

If a confusion matrix shows 25 TP, 5 FN, 1000 TN, and 5 FP, what is the precision ratio? (Round your answer to 2 decimal places.) -0.90 -0.92 -0.99 -0.83 -None of these choices are correct.

0.83 (TP+FP)

If a confusion matrix shows 46 TP, 6 FN, 500 TN, and 4 FP, what is the recall ratio? (Round your answer to 2 decimal places.) -0.90 -0.92 -0.98 -0.88 -None of these choices are correct.

0.88 (TP+FN)

If a confusion matrix shows 46 TP, 6 FN, 500 TN, and 4 FP, what is the precision ratio? (Round your answer to 2 decimal places.) -0.90 -0.92 -0.98 -0.88 -None of these choices are correct.

0.92 (TP+FP)

If a confusion matrix shows 46 TP, 6 FN, 500 TN, and 4 FP, what is the accuracy ratio? (Round your answer to 2 decimal places.) -0.90 -0.92 -0.98 -0.88 -None of these choices are correct.

0.98 (TP+FP+FN+TN)

If a confusion matrix shows 25 TP, 5 FN, 1000 TN, and 5 FP, what is the accuracy ratio? (Round your answer to 2 decimal places.) -0.90 -0.92 -0.99 -0.83 -None of these choices are correct.

0.99 (TP+FP+FN+TN)

If there are two possible classifications, then the confusion matrix would show ____ cells with the prediction options.

4 / four

Which of the following is NOT true about modern neural networks? -Neural networks have been used to solve sophisticated problems like computer vision. -A neural network with more than 100 layers cannot be effectively trained -Most business problems require only two or three hidden layers -More layers increasing the complexity of the models

A neural network with more than 100 layers cannot be effectively trained

Which of the following is NOT true about modern neural networks? -Neural networks have been used to solve sophisticated problems like computer vision. -Most business problems require only two or three hidden layers -More layers increasing the complexity of the models -A neural network with more than 100 layers cannot be effectively trained

A neural network with more than 100 layers cannot be effectively trained

In an example where the goal is to identify spam email, which of the following best describes the difference between a true positive (TP) and a false negative (FN) in a confusion matrix? -A true positive is a correct classification of a spam email; a false negative is a correct classification of a good email -A true positive is a correct classification of a spam email message; a false negative is an incorrect classification of a spam email message -A true positive is the incorrect classification of a good email; a false negative is the incorrect classification of a spam email -A true positive is the correct classification of a good email; a false negative is the incorrect classification of a good email

A true positive is a correct classification of a spam email message; a false negative is an incorrect classification of a spam email message

Which of the following is not true with respect to artificial intelligence? -AI is a broad field in computer science. -AI is intelligence exhibited by machines rather than humans. -AI began in the 1990s. -AI is also called cognitive technologies.

AI began in the 1990s.

Which of the following best describes a confusion matrix? -It is a table summarizing the prediction results. -It has as many rows and columns as classifications to predict. -It can be used to calculate other performance metrics. -All of these choices are correct.

All of these choices are correct.

Select a wrong statement about blockchain concepts. -All transactions on a blockchain network must be verified by a central authority. -Past information recorded on a blockchain cannot be edited or altered. -Participants on a blockchain network must reach consensus before transactions are committed to the blockchain. -Blockchain technology uses a distributed ledger system and each copy of the ledger containing the same transaction records.

All transactions on a blockchain network must be verified by a central authority.

Match the key concepts behind Bitcoin versus Ethereum. Bitcoin <-> ______ Ethereum <-> ______ -One block is added to the blockchain every 12-15 seconds -One block is added to the blockchain every 10 minutes.

Bitcoin <-> 10 minutes Ethereum <-> 12-15 seconds

Match the key concepts behind Bitcoin versus Ethereum. Bitcoin <-> ______ Ethereum <-> ______ -Anonymous peer-to-peer transactions, no middleman involved. -Uses smart contracts

Bitcoin <-> Anonymous peer-to-peer transactions, no middleman involved. Ethereum <-> Uses smart contracts

Which of the following is NOT an example of reinforcement learning? -Playing games -Robotic control -Categorizing email Spam -Self-driving cars

Categorizing email Spam

Which of the following is NOT true about the relationship between AI, machine learning, and deep learning. -Deep learning involves more complexity than machine learning -Artificial intelligence includes both machine and deep learning -Deep learning involves less complexity than machine learning -Machine learning encompasses deep learning

Deep learning involves less complexity than machine learning

Which feature cannot be found in bitcoin? -Double spend -Anyone can join and leave the bitcoin network at any time -Immutable history of transactions -A new block is added every 10 minutes

Double spend

True or false: A blockchain network is a distributed ledger system and all transactions must be verified by a central authority.

False. Reason: A central authority is not needed in a blockchain network.

True or false: Since blockchains are immutable, auditors do not need to audit blockchain transactions.

False. Reason: For most companies, smart contracts will need to be audited to verify the business rules.

True or false: Supervised learning is a type of machine learning but it is seldom used in practice.

False. Reason: It is the most often used.

True or false: Classification problems seek to minimize the differences between predicted and actual values.

False. Reason: Regression problems do this, not classification problems.

True or false: Blockchain technology is used for Bitcoin (cryptocurrency) only.

False. Reason: Blockchain technology is used for many other purposes such as tracking food deliveries or verifying medical records, in addition to using cryptocurrency for transactions.

Which of the following statement is false? -Hyperledger is an open source blockchain platform created by the Linux foundation. -Hyperledger is a permissioned blockchain with capabilities of handling smart contracts. -The main objective of Hyperledger is to achieve cross-industry collaboration with blockchain technology. -Hyperledger is a public blockchain.

Hyperledger is a public blockchain.

Anomaly detection algorithms address which of the following questions? -What should I do next? -Is it A or B? -Is it different? -How much is the predicted price?

Is it different?

Which of the following is true about the AI field of study? -It began in the last 20 years -It began in the 1990s -It began in the 1980s -It began in the 1950s

It began in the 1950s

Which of the following best describes the difference between artificial intelligence and machine learning? -Machine learning is a subset of AI. -Machine learning only applies to deep learning algorithms. -AI and machine learning are the same thing. -Machine learning requires less data than AI.

Machine learning is a subset of AI.

Which of the following best describes artificial neural networks? -Training a neural network involves the use of real-world data. -Deep learning is required for a neural network. -Neural networks consist of inputs, neurons or nodes, and outputs. -Neural networks only have two layers.

Neural networks consist of inputs, neurons or nodes, and outputs.

Select the correct statement on the three types of blockchain. -Private blockchain is also called enterprise blockchain. -Consortium blockchain is permissionless. -A public blockchain requires permission to join.

Private blockchain is also called enterprise blockchain.

Which of the following are NOT uses of natural language processing and understanding applications? -Extract semantic meaning -Recognize faces -Discern sentiment -Translate text

Recognize faces

Which of the following statements is true? -Because blockchain transactions are stored in chronological order, you may trace a block from an earlier transaction block to the most recent block in the blockchain. -Both permissioned and public blockchains need miners to determine which transaction block should be added next. -Ethereum is a private blockchain. -Smart contract was introduced in Ethereum.

Smart contract was introduced in Ethereum.

Which of the following best describes supervised learning? -The training data contain missing labels or incomplete data. -The training data match inputs to nodes in the network. Incorrect -The training data contain input—output pairs. -The training data only include input values. -None of these choices are correct.

The training data contain input—output pairs.

What is the original purpose of using a distributed ledger system with the blockchain technology? -To reduce transaction time. -To simplify accounting concepts involved in conducting transactions -To reduce transaction cost -To eliminate intermediaries/middlemen in perform transactions

To eliminate intermediaries/middlemen in perform transactions

What kinds of business questions would a reinforcement learning algorithm help answer? -Will a 20% discount attract buyers? -What is this house price? -Is this website safe? -What action should I take next?

What action should I take next?

When we refer to smart contract in blockchain, we mean: -a digital contract that can be distributed all to the participants with all terms defined. -a piece of software code that can be executed or triggered by business activities. -a contract that can be edited at any time for business rules. -a digital copy of paper contract such as a Word file.

a piece of software code that can be executed or triggered by business activities.

The ______ ratio is the ratio of correct classifications to total values in the dataset.

accuracy

You are using the confusion matrix to calculate the ratio of correct classifications to the total values in the dataset. That is which of the following ratios? -precision -accuracy -recall -confusion

accuracy

In unsupervised learning, the model discerns how elements of the dataset are _____ or not.

alike / similar

Machine learning is a subset of ____ intelligence.

artificial

PriceWaterhouseCoopers (PWC) uses machine learning to replicate the decision making of expert ______.

auditors

A selected set of organizations may run a blockchain node separately for keeping the transaction records. Administrators from the organizations establish the access rights and permissions for each participant. This type of blockchain is often called: -public blockchain. -permissionless blockchain. -private blockchain. -consortium blockchain.

consortium blockchain.

Deloitte uses machine learning to review ___ to identify and extract key terms.

contracts

Machine learning applications improve their ability to analyze patterns as they process more ____.

data

Artificial neural networks are the _____ of machine learning.

engines

Robotic process automation is used to reduce the ______ labor required.

human

Natural language processing (NLP) applications communicate using written and spoken ______.

language

AI is intelligence exhibited by ___ rather than humans.

machines / computers

New approaches to data ____ allow new and dynamic approaches to gathering, classifying, and correlating data.

management

Ben goes to his bank to wire transfer $1,000 to his sister Jennifer. The role of the bank in this transaction is best described as: -miner. -blockchain. -middleman. -consensus.

middleman.

In supervised learning, the ______ is a known set of values that the neural network seeks to predict.

output

In unsupervised learning, the system uses unstructured data and the system discovers ______ in the data.

patterns

Regression problems seek to ______ real numbers, such as house prices.

predict

The AI field has been around for quite a while, but early progress was limited by primitive computers and ____ tools.

programming / software

In reinforcement learning, the model learns by _____ and error.

trial

Deep learning networks have more than ____ non-output layers.

two / 2