AIDA FINAL EXAM PREP QUESTIONS
AND ANSWERS
Which one of the following is the formula for calculating customer lifetime value? -
Correct Answers -B. Average value of a sale × Number of sales in a year × Number of
years as a customer
Which one of the following insurer employees often provides underwriters with
supplemental information about an insured's property, specific details about the
account's operations, and provide recommendations to improve an account's
underwriting desirability? - Correct Answers -A. Risk control representative
In flipping a coin, each of the two possible outcomes, heads or tails, has an equal
probability of 50%. Because on a particular flip of a coin, only one outcome is possible,
these outcomes are - Correct Answers -A. Mutually exclusive.
Data scientist Sho is incorporating automation technology, such as robotic process
automation, intelligent process automation, chatbots, and natural language processing,
into company systems. He has been asked to develop a process that will aggregate
data, perform tasks, make recommendations, initiate new actions, and learn from its
experiences to improve future decisions. Which one of the following technologies should
Sho utilize? - Correct Answers -A. Intelligent process automation
Which one of the following is an algorithm used to group data into clusters of claims? -
Correct Answers -B. K-means
Which one of the following forms of technology streamlines the underwriting process by
allowing digital applications and databases to talk to and share data with each other? -
Correct Answers -B. Application programming interfaces
Vehicle telematics can function as - Correct Answers -A. Ongoing driver education for
those who participate.
Marketing professionals collect data to create digital portraits of customers. Which one
of the following statement is true concerning these portraits? - Correct Answers -A.
Marketers are interested in their customers as individuals.
As a data scientist, Rodrigo uses predictive and descriptive modeling, machine learning,
and artificial intelligence in his data-modeling projects. Which technology does Rodrigo
employ when he needs to use algorithms to analyze data and then continue to analyze
, new and existing data to improve its decision making? - Correct Answers -D. Machine
learning
Which one of the following forms of technology facilitates the commercial underwriting
process by collecting data regarding driver behavior and vehicle use? - Correct Answers
-D. Telematics
Miu is preparing an exploratory visualization of data and has several formats available
to her, including scatterplots, bar plots, histograms, and pivot tables. She wishes to
reveal patterns in the data by displaying the relative size of the variables. Miu should
prepare a - Correct Answers -D. Bar plot.
An empirical probability is based on - Correct Answers -C. Historical data.
Fatima manages data and conducts analysis to help her company achieve its goals.
The data can be categorized as quantitative, qualitative, structured, and unstructured.
She needs to analyze objective information that is organized into specific fields and
cross-linked with other databases. Fatima should use - Correct Answers -A. Structured,
quantitative data.
The predictive approach to data-driven decision making would be most appropriate for
which one of the following situations? - Correct Answers -D. A transportation company
is looking for a way to optimize routes and improve fuel efficiency.
Laura is developing a presentation visualization for her findings from an exploratory
data analysis. She has several display formats available, including tables, dashboards,
pie charts, and bubble graphs. She needs to highlight the relationship between three
quantitative variables using size and placement. Laura should create a - Correct
Answers -D. Bubble graph.
Martin owns a home in coastal South Carolina. He purchased a parametric insurance
policy that will pay him $15,000 in a matter of days, if a Category 3 or higher hurricane
strikes the area. Martin's parametric insurance policy can be used to do all of the
following, EXCEPT: - Correct Answers -A. Replace the homeowners policy
Larissa is a computer scientist who is using AI to help an insurer to gain efficiencies in
its processes. She has access to computer vision, predictive AI, generative AI, and data
mining. Which one of the following technologies would Larissa use to scan images of
insured buildings for rooftop damage following a windstorm? - Correct Answers -A.
Computer vision
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 -C. Discovering new relationships in data
AND ANSWERS
Which one of the following is the formula for calculating customer lifetime value? -
Correct Answers -B. Average value of a sale × Number of sales in a year × Number of
years as a customer
Which one of the following insurer employees often provides underwriters with
supplemental information about an insured's property, specific details about the
account's operations, and provide recommendations to improve an account's
underwriting desirability? - Correct Answers -A. Risk control representative
In flipping a coin, each of the two possible outcomes, heads or tails, has an equal
probability of 50%. Because on a particular flip of a coin, only one outcome is possible,
these outcomes are - Correct Answers -A. Mutually exclusive.
Data scientist Sho is incorporating automation technology, such as robotic process
automation, intelligent process automation, chatbots, and natural language processing,
into company systems. He has been asked to develop a process that will aggregate
data, perform tasks, make recommendations, initiate new actions, and learn from its
experiences to improve future decisions. Which one of the following technologies should
Sho utilize? - Correct Answers -A. Intelligent process automation
Which one of the following is an algorithm used to group data into clusters of claims? -
Correct Answers -B. K-means
Which one of the following forms of technology streamlines the underwriting process by
allowing digital applications and databases to talk to and share data with each other? -
Correct Answers -B. Application programming interfaces
Vehicle telematics can function as - Correct Answers -A. Ongoing driver education for
those who participate.
Marketing professionals collect data to create digital portraits of customers. Which one
of the following statement is true concerning these portraits? - Correct Answers -A.
Marketers are interested in their customers as individuals.
As a data scientist, Rodrigo uses predictive and descriptive modeling, machine learning,
and artificial intelligence in his data-modeling projects. Which technology does Rodrigo
employ when he needs to use algorithms to analyze data and then continue to analyze
, new and existing data to improve its decision making? - Correct Answers -D. Machine
learning
Which one of the following forms of technology facilitates the commercial underwriting
process by collecting data regarding driver behavior and vehicle use? - Correct Answers
-D. Telematics
Miu is preparing an exploratory visualization of data and has several formats available
to her, including scatterplots, bar plots, histograms, and pivot tables. She wishes to
reveal patterns in the data by displaying the relative size of the variables. Miu should
prepare a - Correct Answers -D. Bar plot.
An empirical probability is based on - Correct Answers -C. Historical data.
Fatima manages data and conducts analysis to help her company achieve its goals.
The data can be categorized as quantitative, qualitative, structured, and unstructured.
She needs to analyze objective information that is organized into specific fields and
cross-linked with other databases. Fatima should use - Correct Answers -A. Structured,
quantitative data.
The predictive approach to data-driven decision making would be most appropriate for
which one of the following situations? - Correct Answers -D. A transportation company
is looking for a way to optimize routes and improve fuel efficiency.
Laura is developing a presentation visualization for her findings from an exploratory
data analysis. She has several display formats available, including tables, dashboards,
pie charts, and bubble graphs. She needs to highlight the relationship between three
quantitative variables using size and placement. Laura should create a - Correct
Answers -D. Bubble graph.
Martin owns a home in coastal South Carolina. He purchased a parametric insurance
policy that will pay him $15,000 in a matter of days, if a Category 3 or higher hurricane
strikes the area. Martin's parametric insurance policy can be used to do all of the
following, EXCEPT: - Correct Answers -A. Replace the homeowners policy
Larissa is a computer scientist who is using AI to help an insurer to gain efficiencies in
its processes. She has access to computer vision, predictive AI, generative AI, and data
mining. Which one of the following technologies would Larissa use to scan images of
insured buildings for rooftop damage following a windstorm? - Correct Answers -A.
Computer vision
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 -C. Discovering new relationships in data
