AIDA 181 - PRACTICE EXAM QUESTIONS AND
ANSWERS
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? - Correct Answers -Classification
Which one of the following is correct regarding an insurer's big data? - Correct Answers
-An insurer's big data consists of both its own internal data and external data
Data science is especially useful for - Correct Answers -Unstructured data
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? - Correct Answers -
Organizations can strategically use data from the Internet of Things and vehicle
telematics
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? - Correct
Answers -Discovering new relationships in data
All of the following are fundamental concepts of data science, EXCEPT: - Correct
Answers -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 - Correct Answers -When an insurer or risk
manager has a specific problem
Which one of the following is a data mining technique an insurer applies when it knows
what information it wants to predict? - Correct Answers -Classification
Which one of the following is correct about data science? - Correct Answers -Data
science is a new field that arose from the need to link big data and technology to
provide useful information
Which one of the following is a legal and regulatory concern in obtaining mass
information from social media? - Correct Answers -Privacy
The important first step in a decision-making model is to - Correct Answers -Define the
problem
,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? - Correct Answers -The data scientists will explore
underutilized sources of data, such as social media and social networks
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? -
Correct Answers -External unstructured data
The first step in the data mining process is to - Correct Answers -Understand what a
business wants to achieve
Data scientists must be able to - Correct Answers -Analyze traditional data as well as
new types
Which one of the following is a fundamental concept of data science? - Correct Answers
-The selection of data mining approaches must be considered in the context in which
the results will be applied
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 - Correct Answers -Structured external data
The purpose of data analytics for insurers is to - Correct Answers -Make data-driven
decisions and strategy
The insurance professionals who have traditionally analyzed data and made predictions
based on their analyses are - Correct Answers -Actuaries
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? - Correct Answers -Harnessing the Internet of Things data to
analyze data from wearables such as hardhats and steel-toed boots
Technology that can particularly assist adjusters in evaluating claims after catastrophes
is - Correct Answers -Drones
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? - Correct
Answers -Unstructured external
Which one of the following is correct regarding data science teams in insurance and risk
management organizations? - Correct Answers -Risk management and insurance
professionals can be valuable members of data science teams
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: - Correct Answers -
The claimant's recorded statement given to Gabrielle
Which one of the following is a characteristic that differentiates big data from traditional
data? - Correct Answers -Velocity
Insurers can benefit from - Correct Answers -A framework they can use to approach
problems through data analysis
Big data includes - Correct Answers -Both structured and unstructured data
Malware is defined as - Correct Answers -Software designed to cause damage
In terms of data quality principles, validity is defined as - Correct Answers -The
accuracy of data within predefined and accepted parameters or values
Which one of the following is an example of a data governance tool? - Correct Answers
-External Policy
Internal data entry processes that capture accounting transactions, customer data or
other operational transactions are called - Correct Answers -Data capture
Which one of the following defines individual risk? - Correct Answers -Individual risk
varies according to the type of business
To gain a competitive advantage, maintain profitability, and satisfy customers an
organization must - Correct Answers -Be able to trust its data
Wycliffe Insurance is very concerned about data quality and has many safeguards in
place to ensure the data it collects and stores is managed appropriately. New claims
data is entered with the date of its arrival to the department. Then the claims
representative's activities are also entered with the date and time whenever the file is
updated. The organization has chosen this data formatting to reflect the required degree
of accuracy that has proven many times to be beneficial when the data is used in
settlement negotiations or arbitration hearings. The dimension of stored data quality
used in this case by Wycliffe is - Correct Answers -Precision
ANSWERS
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? - Correct Answers -Classification
Which one of the following is correct regarding an insurer's big data? - Correct Answers
-An insurer's big data consists of both its own internal data and external data
Data science is especially useful for - Correct Answers -Unstructured data
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? - Correct Answers -
Organizations can strategically use data from the Internet of Things and vehicle
telematics
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? - Correct
Answers -Discovering new relationships in data
All of the following are fundamental concepts of data science, EXCEPT: - Correct
Answers -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 - Correct Answers -When an insurer or risk
manager has a specific problem
Which one of the following is a data mining technique an insurer applies when it knows
what information it wants to predict? - Correct Answers -Classification
Which one of the following is correct about data science? - Correct Answers -Data
science is a new field that arose from the need to link big data and technology to
provide useful information
Which one of the following is a legal and regulatory concern in obtaining mass
information from social media? - Correct Answers -Privacy
The important first step in a decision-making model is to - Correct Answers -Define the
problem
,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? - Correct Answers -The data scientists will explore
underutilized sources of data, such as social media and social networks
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? -
Correct Answers -External unstructured data
The first step in the data mining process is to - Correct Answers -Understand what a
business wants to achieve
Data scientists must be able to - Correct Answers -Analyze traditional data as well as
new types
Which one of the following is a fundamental concept of data science? - Correct Answers
-The selection of data mining approaches must be considered in the context in which
the results will be applied
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 - Correct Answers -Structured external data
The purpose of data analytics for insurers is to - Correct Answers -Make data-driven
decisions and strategy
The insurance professionals who have traditionally analyzed data and made predictions
based on their analyses are - Correct Answers -Actuaries
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? - Correct Answers -Harnessing the Internet of Things data to
analyze data from wearables such as hardhats and steel-toed boots
Technology that can particularly assist adjusters in evaluating claims after catastrophes
is - Correct Answers -Drones
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? - Correct
Answers -Unstructured external
Which one of the following is correct regarding data science teams in insurance and risk
management organizations? - Correct Answers -Risk management and insurance
professionals can be valuable members of data science teams
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: - Correct Answers -
The claimant's recorded statement given to Gabrielle
Which one of the following is a characteristic that differentiates big data from traditional
data? - Correct Answers -Velocity
Insurers can benefit from - Correct Answers -A framework they can use to approach
problems through data analysis
Big data includes - Correct Answers -Both structured and unstructured data
Malware is defined as - Correct Answers -Software designed to cause damage
In terms of data quality principles, validity is defined as - Correct Answers -The
accuracy of data within predefined and accepted parameters or values
Which one of the following is an example of a data governance tool? - Correct Answers
-External Policy
Internal data entry processes that capture accounting transactions, customer data or
other operational transactions are called - Correct Answers -Data capture
Which one of the following defines individual risk? - Correct Answers -Individual risk
varies according to the type of business
To gain a competitive advantage, maintain profitability, and satisfy customers an
organization must - Correct Answers -Be able to trust its data
Wycliffe Insurance is very concerned about data quality and has many safeguards in
place to ensure the data it collects and stores is managed appropriately. New claims
data is entered with the date of its arrival to the department. Then the claims
representative's activities are also entered with the date and time whenever the file is
updated. The organization has chosen this data formatting to reflect the required degree
of accuracy that has proven many times to be beneficial when the data is used in
settlement negotiations or arbitration hearings. The dimension of stored data quality
used in this case by Wycliffe is - Correct Answers -Precision
