Deck 3: Modeling and Evaluation: Going From Defining Business Problems and Data Understanding to Analyzing Data and Answering Questions

Question 1

Fuzzy matching is a data approach used to identify similar individuals based on data known about them.

Answer 1

False

Question 2

Alibaba and its attempt to identify seller and customer fraud based on various characteristics known about them is an example of similarity matching.

Answer 2

True

Question 3

A decision tree can be used to divide data into smaller groups.

Answer 3

True

Question 4

The P in IMPACT Cycle represents performing test plan.

Question 5

Regression is a data approach used to estimate or predict,for each unit,the numerical value of some variable using some type of statistical model.

Question 6

Clustering is a data approach used to divide individuals into groups in a useful or meaningful way.

Question 7

An example of classification would be a credit card company flagging a transaction as being approved or potentially being fraudulent and denying payment.

Question 8

The data approach used to characterize the typical behavior of an individual,group or population by generating summary statistics about the data is referred to as classification.

Question 9

Link prediction is a data approach used to estimate or predict,for each unit,the numerical value of some variable using some type of statistical model.

Question 10

Benford's Law is an absolute and all data must conform.

Question 11

Data reduction is a data approach used to reduce the amount of information that needs to be considered to focus on the most critical items.

Question 12

Fuzzy matching is a computer-assisted technique of finding matches that are less than 100 percent perfect by finding correspondences between portions of the text of each potential match.

Question 13

When considering a question such as "Do our customers form natural groups based on similar attributes?" you would use an unsupervised approach.

Question 14

XBRL is used to facilitate the exchange of financial reporting information between the company and the Securities and Exchange Commission.

Question 15

Data profiling typically involves unstructured data.

Question 16

XBRL is a global standard for exchanging financial reporting information that uses XML.

Question 17

A target is a manually assigned category applied to a record based on an event.

Question 18

Co-occurrence grouping is an example of a supervised approach.

Question 19

Existing data that has been manually evaluated and assigned a class is often referred to as test data.

Question 20

Co-occurrence grouping could be used to match vendors by geographic region.

Question 21

Which of the following best describes a supervised approach to the evaluation of data?

A) Data exploration that is free from oversight by a superior
B) Data exploration that is conducted with direct oversight by a superior
C) Data exploration that examines the relationships between variables that are hypothesized to exist
D) Data exploration that looks for potential patterns of interest

Question 22

In general,the more complex the model,the greater the chance of ________.

A) Overfitting the data
B) Underfitting the data
C) Pruning the data
D) The need to reduce the amount of data considered

Question 23

All of the following are examples of an unsupervised approach to evaluation data except:

A) Similarity matching
B) Clustering
C) Profiling
D) Co-occurrence grouping

Question 24

________ refers to data that is stored in a database or spreadsheet that is readily searchable.

A) Training data
B) Unstructured data
C) Structured data
D) Test data

Question 25

Data reduction typically involves the following steps except:

A) Identify the attribute you would like to reduce or focus on.
B) Identify the parameters of the model.
C) Filter the results.
D) Interpret the results.

Question 26

Which of the following best describes an independent variable?

A) Output
B) Input
C) Application
D) Operation

Question 27

While overfitting data could lead to an error rate of 0 (zero),it is unlikely that you would be able to ________ your results.

A) define
B) specify
C) articulate
D) generalize

Question 28

Which approach to data analytics attempts to predict,for each unit,the numerical value of some variable?

A) Classification
B) Regression
C) Similarity matching
D) Link prediction

Question 29

Which approach to data analytics attempts to characterize the typical behavior of an individual,group or population by generating summary statistics about the data?

A) Classification
B) Regression
C) Profiling
D) Link prediction

Question 30

When working with a predictive model,under fitting the data is most likely caused by ________.

A) an overly complex model
B) an overly simple model
C) over pruning the data
D) a lack of data reduction

Question 31

Using social media to look for relationships between related parties that are not otherwise disclosed to identify related party transactions is an example of ________.

A) Classification
B) Regression
C) Profiling
D) Link prediction

Question 32

Which approach to data analytics attempts to divide individuals into groups in a useful or meaningful way?

A) Clustering
B) Data reduction
C) Similarity matching
D) Co-occurrence grouping

Question 33

All of the following are examples of a supervised approach to evaluation data except:

A) Causal modeling
B) Data reduction
C) Link prediction
D) Regression

Question 34

Which of the following best describes an unsupervised approach to the evaluation of data?

A) Data exploration that is free from oversight by a superior
B) Data exploration that examines the relationships between variables that are hypothesized to exist
C) Data exploration that looks for potential patterns of interest
D) Data exploration that is conducted with direct oversight by a superior

Question 35

Which approach to data analytics attempts to identify similar individuals based on data known about them?

A) Classification
B) Clustering
C) Similarity matching
D) Co-occurrence grouping

Question 36

Which approach to data analytics attempts to assign each unit in a population into a small set of categories?

A) Classification
B) Regression
C) Similarity matching
D) Co-occurrence grouping

Question 37

Data profiling is used to assess data quality and internal controls.It typically involves the following steps except:

A) Filter the results.
B) Identify the objects or activity you want to profile.
C) Determine the types of profiling you want to perform.
D) Set boundaries or thresholds for the activity.

Question 38

Which approach to data analytics attempts to forecast a relationship between two data items?

A) Link prediction
B) Regression
C) Similarity matching
D) Co-occurrence grouping

Question 39

Regression analysis typically involves the following steps except:

A) Identify the variables that might predict an outcome.
B) Identify the parameters of the model.
C) Set boundaries or thresholds.
D) Determine the functional form of the relationship.

Question 40

Which approach to data analytics attempts to discover associations between individuals based on transactions involving them?

A) Classification
B) Regression
C) Similarity matching
D) Co-occurrence grouping

Question 41

Which of the following best describes a dependent variable?

A) Output
B) Input
C) Application
D) Operation

Question 42

Understanding and predicting warranty expense is an important determination for manufacturing firms.When using historical claims data to estimate the current period's warranty expense,the historical claims data represents which of the following?

A) Independent variable
B) Dependent variable
C) Function
D) Statistical Model

Question 43

Chapter 3 discussed 5 (five)data analytics approaches or techniques are most common to address our accounting questions.List and define 3 of the 5 data analytics approaches.Next,describe how each of the 3 data analytics approaches you list could be used by credit card companies to identify fraudulent credit card activity.

Question 44

Understanding and predicting inventory obsolescence is an important determination for retail companies.When using competitor selling prices to estimate the inventory obsolescence reserve,the inventory obsolescence reserve represents which of the following?

A) Independent variable
B) Dependent variable
C) Function
D) Statistical Model

Question 45

Assume that you will be up for a promotion next month and you'd like to impress your boss with your data analytic skills.The company you work for normally books the current month's bad debit for the same amount as the prior month's actual accounts receivable write-offs.Using your general accounting knowledge,explain why this process is not the best method.Next,assuming that you will use a regression analysis,explain the process and describe the data/information you would request/include to perform the analysis.

Question 46

________ states that in many naturally occurring collections of numbers,the leading significant digit is likely to be small.

A) Leading digits hypothesis
B) Moore's law
C) Benford's law
D) Classification

Question 47

________ is existing data that has been manually evaluated and assigned a class and ________ is existing data used to evaluate the model.

A) Test data; Training data
B) Training data; Test data
C) Structured data; Unstructured data
D) Unstructured data; Structured data

Question 48

Benford's Law (be sure to answer all 3 parts):
Part A: Briefly describe Benford's Law.
Part B: Draw a graph that exemplifies data which conforms to Benford's Law (i.e.,what it should look like).
Part C: Briefly describe how auditors could utilize Benford's Law while conducting testwork.

Question 49

Decision trees are used to divide data into smaller groups by splitting the data at each branch into two or more groups.However,this method could lead to unintended consequences if the decision tree is not pruned.Describe the pruning process,when it can occur and the benefits of using it.

Question 50

What is the difference between structured data and unstructured data? Provide an example of each.

Question 51

Retail stores often request customers' zip codes at the end of a sales transaction.This is an example of which data approach?

A) Clustering
B) Regression
C) Similarity matching
D) Classification

Question 52

________ mark the split between one class and another.

A) Decision trees
B) Identifying questions
C) Decision boundaries
D) Linear classifiers

Question 53

One of the key tasks of bank auditors is to consider the amount of the loan loss reserve.When developing a model to estimate the current year's loan loss reserve amount,which of the following would be least likely to be included as an independent variable?

A) Original loan approval amount
B) Customer loan history
C) Current aged loans
D) Collections success

Question 54

Unaware of data analysis tools available to the internal auditors,a store employee frequently processes cash returns without a receipt for $99,which is just below the amount requiring manager approval of $100.An analysis using which of the following would likely (and quickly)identify the employee's fraudulent behavior?

A) Leading digits hypothesis
B) Moore's law
C) Benford's law
D) Clustering

Question 55

The short surveys regarding dining preferences requested at the bottom of the restaurant bill are an example of which data approach?

A) Clustering
B) Regression
C) Similarity matching
D) Link prediction