AIDA 3 EXAM QUESTIONS AND
ANSWERS
Which one of the following best describes why a weighted average gives a more
accurate estimate than a simple majority combining function when predicting the value
of a target variable by its nearest neighbors? - Correct Answers -A majority combining
function gives equal weight to all of the nearest neighbors, while a weighted average
weights the nearest neighbors' contributions by their distance.
When examining a model's results, insurance and risk management professionals
should defer to - Correct Answers -Their professional experience.
A predictive model is applied to a clothing manufacturer's data of 1,000 employees, 50
of whom had workplace injuries in the past year. The table below shows how often the
model correctly and incorrectly predict for each employee "yes, will have an accident" or
"no, will not have an accident."
Predicted No + Predicted Yes = Total (1,000 Employees) Actual No 945 5 950Actual
Yes 10 40 50
There are 40 true positives (TP) for which the model correctly predicted yes.
There are 945 true negatives (TN) for which the model correctly predicted no.
There are 5 false positives (FP) for which the model incorrectly predicted yes (and the
actual answer is no).
There are 10 false negatives (FN) for which the model incorrectly predicted no (and the
actual answer is yes).
Using the formula, 2 × [(Precision × recall) ÷ Precision + recall)], which in this case is 2
× [(.889 × .80) ÷ (.889 + .80)] = .842 measures the workplace injury pr - Correct
Answers -F-score.
Which one of the following is the term for the most similar instances in a data model? -
Correct Answers -Nearest neighbors
In the context of a predictive model, a true positive results when the model - Correct
Answers -Correctly predicts a positive.
Stevens Insurance developed a predictive model that predicts the likelihood that
personal automobile policyholders will not renew their policies. The model is based on
data on 500 policyholders. The data includes the policyholder name, age, number of
vehicles insured, length of time insured with Stevens, and whether the policy renewed
or not. Which one of the following would be considered the target variable in the model?
- Correct Answers -Whether the policy renewed or not
ANSWERS
Which one of the following best describes why a weighted average gives a more
accurate estimate than a simple majority combining function when predicting the value
of a target variable by its nearest neighbors? - Correct Answers -A majority combining
function gives equal weight to all of the nearest neighbors, while a weighted average
weights the nearest neighbors' contributions by their distance.
When examining a model's results, insurance and risk management professionals
should defer to - Correct Answers -Their professional experience.
A predictive model is applied to a clothing manufacturer's data of 1,000 employees, 50
of whom had workplace injuries in the past year. The table below shows how often the
model correctly and incorrectly predict for each employee "yes, will have an accident" or
"no, will not have an accident."
Predicted No + Predicted Yes = Total (1,000 Employees) Actual No 945 5 950Actual
Yes 10 40 50
There are 40 true positives (TP) for which the model correctly predicted yes.
There are 945 true negatives (TN) for which the model correctly predicted no.
There are 5 false positives (FP) for which the model incorrectly predicted yes (and the
actual answer is no).
There are 10 false negatives (FN) for which the model incorrectly predicted no (and the
actual answer is yes).
Using the formula, 2 × [(Precision × recall) ÷ Precision + recall)], which in this case is 2
× [(.889 × .80) ÷ (.889 + .80)] = .842 measures the workplace injury pr - Correct
Answers -F-score.
Which one of the following is the term for the most similar instances in a data model? -
Correct Answers -Nearest neighbors
In the context of a predictive model, a true positive results when the model - Correct
Answers -Correctly predicts a positive.
Stevens Insurance developed a predictive model that predicts the likelihood that
personal automobile policyholders will not renew their policies. The model is based on
data on 500 policyholders. The data includes the policyholder name, age, number of
vehicles insured, length of time insured with Stevens, and whether the policy renewed
or not. Which one of the following would be considered the target variable in the model?
- Correct Answers -Whether the policy renewed or not
