Exam DISC-DA Practice Question 9
Study guide: Exam DISC-DA
An insurer sends its 20,000 homeowners policies to a vendor for a wildfire-risk score. Of 4,000 rural policies, 2,000 are matched; of the 16,000 other policies, 15,600 are matched. The modeler proposes dropping the unmatched policies before fitting the model. What is the main problem with the proposal?
- A) The overall match rate of 88% is too low for the score to be used at all
- B) The vendor's scores must be audited before any record can be matched
- C) Unmatched records are a random sample, so dropping them only reduces volume
- D) Missing scores cluster in rural risks, so dropping them biases the model
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