Exam DISC-DA Practice Question 1
Study guide: Exam DISC-DA
A personal auto insurer's fraud model already gives every open claim a probability of being fraudulent. The special investigations unit can examine only 40 claims a week, and each investigation costs about $1,500. The claims director asks for a tool that combines the scores, the investigation cost and the unit's capacity to choose which claims to refer each week. Which type of analytics is the requested tool?
- A) Predictive analytics, because it relies on the fraud model's probability scores
- B) Prescriptive analytics, because it recommends an action from predictions, costs and a capacity limit
- C) Diagnostic analytics, because it explains why some claims score higher than others
- D) Descriptive analytics, because it summarizes the open claims on hand each week
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