CIS 4093 Chapter 5

39) In the Target case study, why did Target send a teen maternity ads? A) Target's analytic model confused her with an older woman with a similar name. B) Target was sending ads to all women in a particular neighborhood. C) Target's analytic model suggested she was pregnant based on her buying habits. D) Target was using a special promotion that targeted all teens in her geographical area.

C) Target's analytic model suggested she was pregnant based on her buying habits.

22) Understanding customers better has helped Amazon and others become more successful. The understanding comes primarily from A) collecting data about customers and transactions. B) developing a philosophy that is data analytics-centric. C) analyzing the vast data amounts routinely collected. D) asking the customers what they want.

C) analyzing the vast data amounts routinely collected.

24) What is the main reason parallel processing is sometimes used for data mining? A) because the hardware exists in most organizations and it is available to use B) because the most of the algorithms used for data mining require it C) because of the massive data amounts and search efforts involved D) because any strategic application requires parallel processing

C) because of the massive data amounts and search efforts involved

31) All of the following statements about data mining are true EXCEPT A) understanding the business goal is critical. B) understanding the data, e.g., the relevant variables, is critical to success. C) building the model takes the most time and effort. D) data is typically preprocessed and/or cleaned before use.

C) building the model takes the most time and effort.

27) Which broad area of data mining applications analyzes data, forming rules to distinguish between defined classes? A) associations B) visualization C) classification D) clustering

C) classification

35) What does the scalability of a data mining method refer to? A) its ability to predict the outcome of a previously unknown data set accurately B) its speed of computation and computational costs in using the mode C) its ability to construct a prediction model efficiently given a large amount of data D) its ability to overcome noisy data to make somewhat accurate predictions

C) its ability to construct a prediction model efficiently given a large amount of data

38) Third party providers of publicly available datasets protect the anonymity of the individuals in the data set primarily by A) asking data users to use the data ethically. B) leaving in identifiers (e.g., name), but changing other variables. C) removing identifiers such as names and social security numbers. D) letting individuals in the data know their data is being accessed.

C) removing identifiers such as names and social security numbers.

25) The data field "ethnic group" can be best described as A) nominal data. B) interval data. C) ordinal data. D) ratio data.

A) nominal data.

32) Which data mining process/methodology is thought to be the most comprehensive, according to kdnuggets.com rankings? A) SEMMA B) proprietary organizational methodologies C) KDD Process D) CRISP-DM

D) CRISP-DM

37) In data mining, finding an affinity of two products to be commonly together in a shopping cart is known as A) association rule mining. B) cluster analysis. C) decision trees. D) artificial neural networks.

A) association rule mining.

30) Identifying and preventing incorrect claim payments and fraudulent activities falls under which type of data mining applications? A) insurance B) retailing and logistics C) customer relationship management D) computer hardware and software

A) insurance

23) All of the following statements about data mining are true EXCEPT A) the process aspect means that data mining should be a one-step process to results. B) the novel aspect means that previously unknown patterns are discovered. C) the potentially useful aspect means that results should lead to some business benefit. D) the valid aspect means that the discovered patterns should hold true on new data.

A) the process aspect means that data mining should be a one-step process to results.

36) In estimating the accuracy of data mining (or other) classification models, the true positive rate is A) the ratio of correctly classified positives divided by the total positive count. B) the ratio of correctly classified negatives divided by the total negative count. C) the ratio of correctly classified positives divided by the sum of correctly classified positives and incorrectly classified positives. D) the ratio of correctly classified positives divided by the sum of correctly classified positives and incorrectly classified negatives.

A) the ratio of correctly classified positives divided by the total positive count.

1) In the Cabela's case study, the SAS/Teradata solution enabled the direct marketer to better identify likely customers and market to them based mostly on external data sources.

Answer: FALSE

11) Statistics and data mining both look for data sets that are as large as possible.

Answer: FALSE

13) In the cancer research case study, data mining algorithms that predict cancer survivability with high predictive power are good replacements for medical professionals.

Answer: FALSE

15) When training a data mining model, the testing dataset is always larger than the training dataset.

Answer: FALSE

18) Market basket analysis is a useful and entertaining way to explain data mining to a technologically less savvy audience, but it has little business significance.

Answer: FALSE

20) Data that is collected, stored, and analyzed in data mining is often private and personal. There is no way to maintain individuals' privacy other than being very careful about physical data security.

Answer: FALSE

3) Data mining can be very useful in detecting patterns such as credit card fraud, but is of little help in improving sales.

Answer: FALSE

4) The entire focus of the predictive analytics system in the Infinity P&C case was on detecting and handling fraudulent claims for the company's benefit.

Answer: FALSE

6) Data mining requires specialized data analysts to ask ad hoc questions and obtain answers quickly from the system.

Answer: FALSE

7) Ratio data is a type of categorical data.

Answer: FALSE

9) In the Memphis Police Department case study, predictive analytics helped to identify the best schedule for officers in order to pay the least overtime.

Answer: FALSE

10) In data mining, classification models help in prediction.

Answer: TRUE

12) Using data mining on data about imports and exports can help to detect tax avoidance and money laundering.

Answer: TRUE

14) During classification in data mining, a false positive is an occurrence classified as true by the algorithm while being false in reality.

Answer: TRUE

16) When a problem has many attributes that impact the classification of different patterns, decision trees may be a useful approach.

Answer: TRUE

17) In the 2degrees case study, the main effectiveness of the new analytics system was in dissuading potential churners from leaving the company.

Answer: TRUE

19) The number of users of free/open source data mining software now exceeds that of users of commercial software versions.

Answer: TRUE

2) The cost of data storage has plummeted recently, making data mining feasible for more firms.

Answer: TRUE

5) If using a mining analogy, "knowledge mining" would be a more appropriate term than "data mining."

Answer: TRUE

8) Interval data is a type of numerical data.

Answer: TRUE

40) Which of the following is a data mining myth? A) Data mining is a multistep process that requires deliberate, proactive design and use. B) Data mining requires a separate, dedicated database. C) The current state-of-the-art is ready to go for almost any business. D) Newer Web-based tools enable managers of all educational levels to do data mining.

B) Data mining requires a separate, dedicated database.

33) Prediction problems where the variables have numeric values are most accurately defined as A) classifications. B) regressions. C) associations. D) computations.

B) regressions.

29) The data mining algorithm type used for classification somewhat resembling the biological neural networks in the human brain is A) association rule mining. B) cluster analysis. C) decision trees. D) artificial neural networks.

D) artificial neural networks.

28) Which broad area of data mining applications partitions a collection of objects into natural groupings with similar features? A) associations B) visualization C) classification D) clustering

D) clustering

21) In the Cabela's case study, what types of models helped the company understand the value of customers, using a five-point scale? A) reporting and association models B) simulation and geographical models C) simulation and regression models D) clustering and association models

D) clustering and association models

34) What does the robustness of a data mining method refer to? A) its ability to predict the outcome of a previously unknown data set accurately B) its speed of computation and computational costs in using the mode C) its ability to construct a prediction model efficiently given a large amount of data D) its ability to overcome noisy data to make somewhat accurate predictions

D) its ability to overcome noisy data to make somewhat accurate predictions

26) The data field "salary" can be best described as A) nominal data. B) interval data. C) ordinal data. D) ratio data.

D) ratio data.