AIDA 181 - Simulated Exam QUESTIONS
WITH 100% COMPLETE SOLUTIONS
Which one of the following pairs represents internal environmental factors that could be
affected by a data analytics initiative? - correct answer ✔✔A. Opportunities and strengths
B. Strengths and weaknesses
C. Threats and opportunities
D. Weaknesses and threats
** CORRECT: Strengths and weaknesses
If clusters are grouped at one level of the hierarchy, - correct answer ✔✔A. They are only
grouped at that one level of the hierarchy.
B. They are grouped at all levels of the hierarchy.
C. They are grouped at each lower level of the hierarchy.
D. They are grouped at each higher level of the hierarchy.
** CORRECT: They are grouped at each higher level of the hierarchy.
Which one of the following data governance tools allows the data governance committee to
look at data relationships and interdependencies across the organization? - correct answer
✔✔A. Internal coding procedures
B. Enterprise data models
C. Project management programs
D. External compliance guidelines
,** CORRECT: Enterprise data models
A neural network can work with - correct answer ✔✔A. Categorical values only.
B. Numerical values only.
C. Numerical and categorical values.
D. Probability values only.
** CORRECT: Numerical values only.
Encrypting data is an example of - correct answer ✔✔A. A data governance program.
B. A data security program.
C. A regulatory compliance program.
D. An enterprise risk management program
** CORRECT: A data security program.
Greatview Insurance is a regional insurer. The profitability of its homeowners book has been
declining for several years. In the past, Greatview has been able to maintain profitability by
using traditional rating variables, and implementing flat rate increases across the entire book
when necessary. Management believes that is the only way to improve profitability. Which one
of the following would most likely occur if Greatview continues to apply flat rate increases
across the homeowners book? - correct answer ✔✔A. The customers with the lower loss ratios
would most likely find coverage elsewhere, and the overall retention and loss ratio would
increase.
B. The customers with higher loss ratios would be more likely to stay, leaving the insurer with
the least profitable segment of its book. The overall loss ratio would most likely not improve.
C. The customers with higher loss ratios would most likely find coverage elsewhere, and the
overall retention and loss ratio would decrease.
, D. The customers with lower loss ratios would most likely pay the increase and stay, and the
customers with the higher loss ratio would leave, resulting in an improved loss ratio for the
book.
** CORRECT: The customers with higher loss ratios would be more likely to stay, leaving the
insurer with the least profitable segment of its book. The overall loss ratio would most likely not
improve.
Usage-based insurance (UBI) is - correct answer ✔✔A. A type of auto insurance in which the
premium is based on the policyholder's driving behavior.
B. Based on attributes such as driving record, driver education, years of driving experience, and
credit score.
C. A device that tracks driving habits regarding braking, acceleration, speed, cornering, lane
shifting, left turns versus right turns, and the time of day the vehicle is driven.
D. A risk-management technique used for fleet safety programs to monitor employees' driving
behaviors but not to price insurance.
** CORRECT: A type of auto insurance in which the premium is based on the policyholder's
driving behavior.
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 predicts 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 5 950
Actual Yes 10 40 50
Based on the preceding number, these statements can be made:
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.
WITH 100% COMPLETE SOLUTIONS
Which one of the following pairs represents internal environmental factors that could be
affected by a data analytics initiative? - correct answer ✔✔A. Opportunities and strengths
B. Strengths and weaknesses
C. Threats and opportunities
D. Weaknesses and threats
** CORRECT: Strengths and weaknesses
If clusters are grouped at one level of the hierarchy, - correct answer ✔✔A. They are only
grouped at that one level of the hierarchy.
B. They are grouped at all levels of the hierarchy.
C. They are grouped at each lower level of the hierarchy.
D. They are grouped at each higher level of the hierarchy.
** CORRECT: They are grouped at each higher level of the hierarchy.
Which one of the following data governance tools allows the data governance committee to
look at data relationships and interdependencies across the organization? - correct answer
✔✔A. Internal coding procedures
B. Enterprise data models
C. Project management programs
D. External compliance guidelines
,** CORRECT: Enterprise data models
A neural network can work with - correct answer ✔✔A. Categorical values only.
B. Numerical values only.
C. Numerical and categorical values.
D. Probability values only.
** CORRECT: Numerical values only.
Encrypting data is an example of - correct answer ✔✔A. A data governance program.
B. A data security program.
C. A regulatory compliance program.
D. An enterprise risk management program
** CORRECT: A data security program.
Greatview Insurance is a regional insurer. The profitability of its homeowners book has been
declining for several years. In the past, Greatview has been able to maintain profitability by
using traditional rating variables, and implementing flat rate increases across the entire book
when necessary. Management believes that is the only way to improve profitability. Which one
of the following would most likely occur if Greatview continues to apply flat rate increases
across the homeowners book? - correct answer ✔✔A. The customers with the lower loss ratios
would most likely find coverage elsewhere, and the overall retention and loss ratio would
increase.
B. The customers with higher loss ratios would be more likely to stay, leaving the insurer with
the least profitable segment of its book. The overall loss ratio would most likely not improve.
C. The customers with higher loss ratios would most likely find coverage elsewhere, and the
overall retention and loss ratio would decrease.
, D. The customers with lower loss ratios would most likely pay the increase and stay, and the
customers with the higher loss ratio would leave, resulting in an improved loss ratio for the
book.
** CORRECT: The customers with higher loss ratios would be more likely to stay, leaving the
insurer with the least profitable segment of its book. The overall loss ratio would most likely not
improve.
Usage-based insurance (UBI) is - correct answer ✔✔A. A type of auto insurance in which the
premium is based on the policyholder's driving behavior.
B. Based on attributes such as driving record, driver education, years of driving experience, and
credit score.
C. A device that tracks driving habits regarding braking, acceleration, speed, cornering, lane
shifting, left turns versus right turns, and the time of day the vehicle is driven.
D. A risk-management technique used for fleet safety programs to monitor employees' driving
behaviors but not to price insurance.
** CORRECT: A type of auto insurance in which the premium is based on the policyholder's
driving behavior.
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 predicts 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 5 950
Actual Yes 10 40 50
Based on the preceding number, these statements can be made:
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.
