AIDA 181: Assignment 1 (questions and
answers) rated A+
Big data - correct answer ✔✔Sets of data that are too large to be gathered and analyzed by
traditional methods.
Law of large numbers - correct answer ✔✔A mathematical principle stating that as the number
of similar but independent exposure units increases, the relative accuracy of predictions about
future outcomes (losses) also increases.
Data mining - correct answer ✔✔The analysis of large amounts of data to find new relationships
and patterns that will assist in developing business solutions.
Text mining - correct answer ✔✔Obtaining information through language recognition.
Telematics - correct answer ✔✔The use of technological devices in vehicles with wireless
communication and GPS tracking that transmit data to businesses or government agencies;
some return information for the driver.
Internet of Things (IoT) - correct answer ✔✔A network of objects that transmit data to
computers.
Machine learning - correct answer ✔✔Artificial intelligence in which computers continually
teach themselves to make better decisions based on previous results and new data.
Artificial intelligence (AI) - correct answer ✔✔Computer processing or output that simulates
human reasoning or knowledge.
, Data science - correct answer ✔✔An interdisciplinary field involving the design and use of
techniques to process very large amounts of data from a variety of sources and to provide
knowledge based on the data.
A risk manager for a large organization that delivers food products is considering whether new
technology could help improve driver safety and reduce accidents. Describe a type of new
technology that could help this risk manager. - correct answer ✔✔Telematics could help the risk
manager. Data about the driving behavior of each driver could be transmitted to a computer
and then analyzed to determine which drivers are driving safely and, potentially, the cause of
accidents.
How are risk management and insurance professionals increasingly using data? - correct answer
✔✔Risk management and insurance professionals have many ways of putting data to use. Risk
managers can improve safety measures based on data from sources such as wearable sensors
on employees. Underwriters can obtain new data on risks from drones and social media. Claims
adjusters can better identify fraud by identifying patterns in internal and external data.
Data Characteristics: Volume - correct answer ✔✔The enormous amount of data now available
continues to increase. To use an analogy, traditional data is like the planet Earth, and big data is
like the ever-expanding universe.
Data Characteristics: Variety - correct answer ✔✔Traditionally, insurers used structured data.
Big data includes structured data, but in a larger volume than traditional data. Additionally,
because big data comes from multiple sources, it also consists of unstructured data.
Data Characteristics: Velocity - correct answer ✔✔The speed at which insurers receive data is
constantly increasing, but velocity also refers to the growing rate of change in the types of data.
Data Characteristics: Veracity - correct answer ✔✔The completeness and accuracy of the data.
Unstructured big data tends to have less veracity than structured data, though it's not likely that
structured data would be perfect, either.
answers) rated A+
Big data - correct answer ✔✔Sets of data that are too large to be gathered and analyzed by
traditional methods.
Law of large numbers - correct answer ✔✔A mathematical principle stating that as the number
of similar but independent exposure units increases, the relative accuracy of predictions about
future outcomes (losses) also increases.
Data mining - correct answer ✔✔The analysis of large amounts of data to find new relationships
and patterns that will assist in developing business solutions.
Text mining - correct answer ✔✔Obtaining information through language recognition.
Telematics - correct answer ✔✔The use of technological devices in vehicles with wireless
communication and GPS tracking that transmit data to businesses or government agencies;
some return information for the driver.
Internet of Things (IoT) - correct answer ✔✔A network of objects that transmit data to
computers.
Machine learning - correct answer ✔✔Artificial intelligence in which computers continually
teach themselves to make better decisions based on previous results and new data.
Artificial intelligence (AI) - correct answer ✔✔Computer processing or output that simulates
human reasoning or knowledge.
, Data science - correct answer ✔✔An interdisciplinary field involving the design and use of
techniques to process very large amounts of data from a variety of sources and to provide
knowledge based on the data.
A risk manager for a large organization that delivers food products is considering whether new
technology could help improve driver safety and reduce accidents. Describe a type of new
technology that could help this risk manager. - correct answer ✔✔Telematics could help the risk
manager. Data about the driving behavior of each driver could be transmitted to a computer
and then analyzed to determine which drivers are driving safely and, potentially, the cause of
accidents.
How are risk management and insurance professionals increasingly using data? - correct answer
✔✔Risk management and insurance professionals have many ways of putting data to use. Risk
managers can improve safety measures based on data from sources such as wearable sensors
on employees. Underwriters can obtain new data on risks from drones and social media. Claims
adjusters can better identify fraud by identifying patterns in internal and external data.
Data Characteristics: Volume - correct answer ✔✔The enormous amount of data now available
continues to increase. To use an analogy, traditional data is like the planet Earth, and big data is
like the ever-expanding universe.
Data Characteristics: Variety - correct answer ✔✔Traditionally, insurers used structured data.
Big data includes structured data, but in a larger volume than traditional data. Additionally,
because big data comes from multiple sources, it also consists of unstructured data.
Data Characteristics: Velocity - correct answer ✔✔The speed at which insurers receive data is
constantly increasing, but velocity also refers to the growing rate of change in the types of data.
Data Characteristics: Veracity - correct answer ✔✔The completeness and accuracy of the data.
Unstructured big data tends to have less veracity than structured data, though it's not likely that
structured data would be perfect, either.
