ExpertEasy1 markMultiple Choice
CPA · Question 29 · Area 4: Data Analytics
A company is analyzing a dataset of customer transactions to detect potential credit card fraud. Which data analytics technique would be MOST appropriate for identifying transactions that deviate significantly from established patterns?
A company is analyzing a dataset of customer transactions to detect potential credit card fraud. Which data analytics technique would be MOST appropriate for identifying transactions that deviate significantly from established patterns?
Answer options:
A.
Regression Analysis
B.
Cluster Analysis
C.
Anomaly Detection
D.
Sentiment Analysis
How to approach this question
Match the goal to the technique. Goal: Find 'weird' stuff. Technique: Anomaly Detection.
Full Answer
C.Anomaly Detection✓ Correct
Anomaly detection (or outlier detection) is the specific branch of analytics used to find rare items, events, or observations which raise suspicions by differing significantly from the majority of the data.
Common mistakes
Choosing Clustering (which groups data) instead of Anomaly Detection (which finds what doesn't fit a group).
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