Exam DISC-DA Practice Question 25
Study guide: Exam DISC-DA
In a homeowners severity data set of 60,000 claims, one claim shows a paid loss of $2,400,000 on a dwelling with a $240,000 coverage limit, and nothing else on the policy could explain the amount. The analyst suspects a keying error. What should be done?
- A) Delete the claim's row and proceed, since it is an obvious outlier
- B) Check the source, correct the value or set it to missing, and record the change
- C) Keep the value as recorded, since extreme claims are genuine and informative
- D) Cap every claim in the data set at its 99th percentile instead
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