CPCU 500 Module 10 Test Bank

1. Which one of the following statements is correct regarding data?

2. Big data can best be described as:

3. All of the following are characteristics that make data big, EXCEPT:

4. Unstructured big data is likely to have less completeness and accuracy than structured big data. The completeness and accuracy of data is often referred to as:

5. Which one of the following characteristics of big data includes the growing rate of change in the types of data and the need to deal with it in a timely manner?

6. Economic data would include:

7. Which one of the following types of data would most likely be characterized as external data?

8. Which of the following statements is correct regarding big data characteristics and sources?

9. Which of the following statements is correct regarding big data characteristics and sources?

10. Which of the following types of big data would be considered structured external data?

11. Which of the following types of big data would be considered structured internal data?

12. Surveillance videos are an example of:

13. Which one of the following is an example of exploratory data analysis?

14. Which one of the following represents a relatively straightforward type of data analysis technique that can be used to determine a correlation between two attributes?

15. Which of the following combinations of data mining techniques are applied when an insurer knows what information it wants to predict?

16. Which of the following statements is correct regarding types and purposes of data mining techniques?

17. A risk management professional identified various attributes to be used to test driver safety. The risk management professional built a bubble plot reflecting the average accident frequency by driver age. This is an example of:

18. ABC Insurance Company is trying to determine the percentage of premium increase that would reduce a customer’s likelihood of renewing a homeowners policy. Using the variables of nonrenewal and percentage of premium increase, the company developed a model to analyze their customers and provide a probability score. Which of the following data analysis techniques has been performed by ABC Insurance Company?

19. Which one of the following represents the process of extracting hidden patterns from data that is used in a range of applications for research?

20. Which one of the following statements is correct regarding characteristics of big data?

21. Which one of the following represents the first step in the text mining process?

22. Which one of the following represents a type of unstructured machine-produced data?

23. Which one of the following statements is correct regarding a neural network?

24. Which one of the following represents a centrality measure that would measure the number of Facebook friends an individual has?

25. Don, a manager at Super Insurer, has just designed a major change in company policy. He has asked two employees of the company, Jack and Jill, to spread the news of the change to other employees. Based on centrality measures of the company’s email traffic, Don believes Jill will spread the news more rapidly and to more employees through email than Jack. This belief is based on Jill’s high measure in which one of the following centrality measures?

26. Which one of the following represents the first step in a decision-making model?

27. An organizational process to gather and analyze relevant and verifiable data and evaluate the results to guide business strategies is referred to as:

28. Which of the following represents an approach to data-driven decision making that involves providing a method that can be used repeatedly to provide information essential for either computers or individuals to make recurring decisions?

29. Which of the following statements is correct regarding the model for data-driven decision making in risk management and insurance?

30. XYZ Insurance Company has implemented a website to sell homeowners insurance. Each time a person applies for homeowners insurance, automatic underwriting is initiated that makes the underwriting decision and issues a price quote to the customer. This is an example of which type of approach to data-driven decision making?

31. A risk manager has observed that customer slips and falls have increased in frequency. The risk manager would like to determine why this is happening and would like to develop a solution to the problem. The risk manager obtains the liability insurer’s claims data and chooses the following variables:
• Date of accident.
• Store location.
• Location of accident within store.
• Sales at each store.
The risk manager runs a report on the data and determines that some of the data contains a clearly incorrect date of accident. Which one of the following represents the most important next step for the risk manager?