Actuarial Notes

Exam MAS-I Practice Question 157

Study guide: Exam MAS-I

An insurer is choosing a classifier to flag claims for fraud review. For each description below, say which classifier it describes: naive Bayes (as in ISLR §4.4.4), quadratic discriminant analysis (QDA), both, or neither. An option may be used more than once or not at all.

Part a (1 point)

Estimates, separately for each class, the covariance between every pair of predictors.

  • A) Naive Bayes only
  • B) QDA only
  • C) Both naive Bayes and QDA
  • D) Neither

Part b (1 point)

Handles a qualitative predictor by using the share of each class's training observations at each of its levels.

  • A) Naive Bayes only
  • B) QDA only
  • C) Both naive Bayes and QDA
  • D) Neither

Part c (1 point)

Models P(Y = k \mid X = \mathbf{x}) directly as a function of \mathbf{x}, without specifying how the predictors are distributed within each class.

  • A) Naive Bayes only
  • B) QDA only
  • C) Both naive Bayes and QDA
  • D) Neither

Part d (1 point)

With normal predictor distributions whose variances differ by class, can produce a boundary between two classes that is curved in the predictors.

  • A) Naive Bayes only
  • B) QDA only
  • C) Both naive Bayes and QDA
  • D) Neither

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