quiz 1 risk analytics

Insurers can benefit from Select one: A. A framework they can use to approach problems through data analysis. B. Discarding traditional data analysis and using only new data science techniques. C. Applying the theories of physics to complex insurance data. D. Analyzing data very closely to locate the most applicable findings.

A. A framework they can use to approach problems through data analysis.

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

B. Both structured and unstructured data.

Which one of the following is a data mining technique an insurer applies when it knows what information it wants to predict? Select one: A. Machine learning B. Classification C. Cluster analysis D. Association rule learning

B. Classification

Which one of the following correctly describes classification? Select one: A. Classification explores data to find groups with common and previously unknown characteristics. B. Classification assigns members of a dataset into categories based on known characteristics. C. Classification predicts a numerical value given characteristics of each member of a dataset. D. Classification develops algorithms to develop rules to apply to new data.

B. Classification assigns members of a dataset into categories based on known characteristics.

Which one of the following is correct about data science? Select one: A. Data science is traditional computer programming that is applied to larger amounts of data. B. Data science is a new field that arose from the need to link big data and technology to provide useful information. C. Data science automates all data processing and eliminates the need for human involvement. D. Data science is a field within mathematics that uses new mathematical concepts to analyze data.

B. Data science is a new field that arose from the need to link big data and technology to provide useful information.

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

B. Define the problem.

Reynolds Insurance provides workers compensation insurance for small to medium sized companies, mostly to its local and regional manufacturers. For data science to be relevant and useful to Reynolds, which one of the following types of technology would be its best investment? Select one: A. Placing telematics in employees' personal automobiles to better identify driving behaviors. B. Harnessing the Internet of Things data to analyze data from wearables such as hardhats and steel-toed boots. C. Classifying employees by various demographics to reveal the likelihood of lawsuits against their organization. D. Analyzing data to compare older and younger workers' preferences for longer shifts but shorter work weeks.

B. Harnessing the Internet of Things data to analyze data from wearables such as hardhats and steel-toed boots.

The purpose of data analytics for insurers is to Select one: A. Automate most organizational processes. B. Eliminate the need for human analysis. C. Make data-driven decisions and strategy. D. Acquire and use all the new types of technology.

C. Make data-driven decisions and strategy.

Which one of the following correctly describes a new evolution of big data, sometimes referred to as big data 2.0 in insurance and risk management? Select one: A. Organizations have just started conducting business on the Internet. B. Insurers are exploring the possibility of underwriting personal lines over the Internet. C. Organizations can strategically use data from the Internet of Things and vehicle telematics. D. Insurers are using the Internet to market their products to customers.

C. Organizations can strategically use data from the Internet of Things and vehicle telematics.

Which one of the following is a legal and regulatory concern in obtaining mass information from social media? Select one: A. Fraud B. Volume C. Privacy D. Veracity

C. Privacy

Which one of the following is correct regarding an insurer's big data? Select one: A. An insurer's big data consists of both its own internal data and external data. B. An insurer's big data consists only of new types of external data. C. Most insurers do not currently possess any big data. D. An insurer's big data consists only of its own internal data.

A. An insurer's big data consists of both its own internal data and external data.

Galliano Insurance Agency knows that it is most likely to retain the customers that it insures for multiple lines of coverage. The agency is always trying to identify new insurance products. To help identify new products, it needs a data mining technique that will explore data to find groups with common and previously unknown characteristics. Which one of the following data mining techniques should Galliano Insurance Agency use? Select one: A. Cluster analysis B. Classification C. Regression analysis D. Association rule learning

A. Cluster analysis

Technology that can particularly assist adjusters in evaluating claims after catastrophes is Select one: A. Drones. B. Telematics. C. Sensors. D. Wearables.

A. Drones.

Durham Insurance insures many trucking operations and has a large database of loss experience. It wants to know how many hours a driver can drive without taking a break before the likelihood of having an accident increases. Which one of the following data mining techniques would an analyst use to predict the number of hours? Select one: A. Regression analysis B. Association rule learning C. Classification D. Cluster analysis

A. Regression analysis

A project team at Goshen Mutual has been working on developing a new product for the personal insurance market. The team is using geodemographic data to determine which territories would be the best to introduce the product. Geodemographic data would be categorized as Select one: A. Structured external data. B. Unstructured external data. C. Unstructured internal data. D. Structured internal data.

A. Structured external data.

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

A. Unstructured data.

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. Unstructured external B. Structured internal C. Unstructured internal D. Structured external

A. Unstructured external

Which one of the following is correct regarding data science teams in insurance and risk management organizations? Select one: A. Data scientists and computer programmers are the only useful members of data science teams. B. Risk management and insurance professionals can be valuable members of data science teams. C. Data scientists and actuaries are the only useful members of data science teams. D. Data scientists are more effective working alone than in teams.

B. Risk management and insurance professionals can be valuable members of data science teams.

All of the following are fundamental concepts of data science, EXCEPT: Select one: A. After information is gleaned, the user must have a process to evaluate the accuracy of the any conclusions drawn. B. The data mining project need not provide actions that lead to better business results in order to be considered worthwhile. C. Information technology can be applied to big data to reveal characteristics of people or events of interest. D. Close analysis may result in substantive findings that may not necessarily lead to actionable conclusions.

B. The data mining project need not provide actions that lead to better business results in order to be considered worthwhile.

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

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

Greatview Insurance wants to predict which auto liability claims will most likely go to litigation, so it can assign them to experienced adjusters early in the process. There are certain known indicators of litigation that Greatview wants to use in the data mining process. Which one of the following data mining techniques would Greatview's analyst most likely use? Select one: A. Regression analysis B. Association rule learning C. Classification D. Cluster analysis

C. Classification

Gabrielle is a claims representative from Onward Insurance. She is using external data to verify some information as part of a claims investigation. In doing so, Gabrielle will likely rely on all of the following sources of information, EXCEPT: Select one: A. Credit ratings obtained with permission B. Geodemographic data C. The claimant's recorded statement given to Gabrielle D. Economic data

C. The claimant's recorded statement given to Gabrielle

Which one of the following is a fundamental concept of data science? Select one: A. Analyzing data as closely as possible is likely to produce the most generally applicable results. B. Information technology cannot be applied to big data, and experimental approaches are used. C. The selection of data mining approaches must be considered in the context in which the results will be applied. D. Random exploration is the best approach to discover useful knowledge from data.

C. The selection of data mining approaches must be considered in the context in which the results will be applied.

The insurance professionals who have traditionally analyzed data and made predictions based on their analyses are Select one: A. Claims professionals. B. Computer programmers. C. Data scientists. D. Actuaries.

D. Actuaries

Data scientists must be able to Select one: A. Analyze new types of data only. B. Apply only traditional techniques in new ways to big data. C. Apply the theories of new physics to data. D. Analyze traditional data as well as new types.

D. Analyze traditional data as well as new types.

Which one of the following is a way that insurers and risk managers can use data science to improve their results through data-driven decision making? Select one: A. Determining prior year losses at a particular location B. Providing human analysis of data C. Using industry data in addition to the organization's own data D. Discovering new relationships in data

D. Discovering new relationships in data

Gustav is a claims representative from Forefront Insurance. He is accessing online weather reports to determine hazardous road conditions alleged by an injured claimant. These weather reports are an example of which one of the following types of data? Select one: A. Internal unstructured data B. Internal structured data C. External structured data D. External unstructured data

D. External unstructured data

Which one of the following can be applied over time to refine a model to better predict results? Select one: A. Association rule learning B. Statistics C. Regression D. Machine learning

D. Machine learning

Which one of the following correctly describes a new evolution of big data, sometimes referred to as big data 2.0 in insurance and risk management? Select one: A. Insurers are using the Internet to market their products to customers. B. Organizations have just started conducting business on the Internet. C. Insurers are exploring the possibility of underwriting personal lines over the Internet. D. Organizations can strategically use data from the Internet of Things and vehicle telematics.

D. Organizations can strategically use data from the Internet of Things and vehicle telematics.

Data scientists at Grisham Risk and Insurance are working with underwriting, claims, and other department professionals to design data mining projects to help generate better business solutions and decisions. Which one of the following is true regarding this collaboration at Grisham? Select one: A. The data scientists will concentrate on analyzing numerical or categorial data. B. It is important that there be clear divisions between the actuaries and the data scientists. C. For any project such as this, the claims professional will provide the domain knowledge for the others. D. The data scientists will explore underutilized sources of data, such as social media and social networks.

D. The data scientists will explore underutilized sources of data, such as social media and social networks.

The first step in the data mining process is to Select one: A. Prepare the data that will be used. B. Collect the data that will be used. C. Select a data mining technique. D. Understand what a business wants to achieve.

D. Understand what a business wants to achieve.

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

D. Velocity