Deck 4: Data Mining Process, Methods, and Algorithms

Question 1

In the Miami-Dade Police Department case, the department chose to start small and grow big in order to demonstrate success with data mining.

Answer 1

True

Question 2

The entire focus of the predictive analytics system in the Visa case was on detecting and handling fraudulent charges for the company's benefit.

Answer 2

False

Question 3

Decision trees are most appropriate for categorical data and interval data.

Answer 3

True

Question 4

In the terrorist funding case study, predictive analytics helped to identify abnormal transfer prices on exports.

Question 5

Using data mining on data about imports and exports can help to detect tax avoidance and money laundering.

Question 6

In the cancer research case study, data mining algorithms that predict cancer survivability with high predictive power are good replacements for medical professionals.

Question 7

Market basket analysis is a useful and entertaining way to explain data mining to a technologically less savvy audience, but it has little business significance.

Question 8

Which index has been used in economics to measure the diversity of a population?

A) Atkinson
B) Lorenz
C) Stockholm
D) Gini

Question 9

________ data have finite nonordered values (e.g., gender data, which have two values: male and female).

Question 10

________ is the splitting mechanism used in ID3, which is perhaps the most widely known decision tree algorithm.

Question 11

List five reasons for the growing popularity of data mining in the business world.

Question 12

Describe the difference between quantitative and qualitative data. Include definitions for nominal and ordinal data.

Question 13

List and briefly describe the six steps of the CRISP-DM data mining process.

Question 14

Briefly describe five techniques (or algorithms) that are used for classification modeling.

Question 15

In lessons learned from the Target case, what legal warnings would you give another retailer using data mining for marketing?