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1. A national insurer created a a predictive model to determine the likelihood that newly licensed drivers will have an accident within the year of receiving a license. They have data on 1000 new drivers and the predictive model based on 600 drivers shows a strong correlation between drivers under age 18 and accidents in the year Before using the model for underwriting purposes, the data is ran on the remaining 400 drivers through the model to confirm that the correlation is significant. The data on the remaining 400 drivers is known as...
A. Training data.
B. Cross fit data.
C. Holdout data.
D. Production data.
2. In the process of training a predictive model overfitting occurs when…
A. The model is general.
B. The model is overly tailored with the training data.
C. The data has known target values.
D. Data is held out.
3. An insurer is needing to determine the numerical value for a known target variable and will use...
A. A correlation matrix.
B. Association rule learning.
C. Cluster matrix.
D. Regression.
4. Analyzing claims adjusters' notes as an analysis technique, the insurer is using...
A. Text mining.
B. Regression.
C. Social networks.
D. Classification tree.
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