Actuarial Notes

Exam DISC-DA Practice Question 235

Study guide: Exam DISC-DA

An insurer plans a predictive model to flag homeowners claims that are likely to become litigated. It will learn from five years of closed claims, each recorded as litigated or not. Which statement about the project is correct?

  • A) It is a supervised model: the target is known for every historical claim the model learns from.
  • B) It is an unsupervised model, because the new claims it will score have no known outcome yet.
  • C) The best evidence that it works is how closely it fits the five years of claims it was fitted to.
  • D) Which decision the model will feed can be settled after it is built, because that decision does not affect which variables may be used.

Answer this question and see the worked solution

Concepts tested

More questions from this set