ACCT 3130 CHAPTER 3 EXAM QUESTIONS WITH VERIFIED SOLUTIONS LATEST UPDATE 2026
Benford's Law is an absolute and all data must conform. - Answers False
A decision tree can be used to divide data into smaller groups. - Answers True
Data reduction is a data approach used to reduce the amount of information that needs to be
considered to focus on the most critical items. - Answers True
Regression is a data approach used to estimate or predict, for each unit, the numerical value of some
variable using some type of statistical model. - Answers True
Link prediction is a data approach used to estimate or predict, for each unit, the numerical value of
some variable using some type of statistical model. - Answers False
Existing data that have been manually evaluated and assigned a class is often referred to as test data.
- Answers False
Co-occurrence grouping could be used to match vendors by geographic region. - Answers True
Fuzzy matching is a data approach used to identify similar individuals based on data known about
them. - Answers False
Alibaba and its attempt to identify seller and customer fraud based on various characteristics known
about them is an example of similarity matching. - Answers True
Fuzzy matching is a computer-assisted technique of finding matches that are less than 100 percent
perfect by finding correspondences between portions of the text of each potential match. - Answers
True
The P in IMPACT Cycle represents performing test plan. - Answers True
Clustering is a data approach used to divide individuals into groups in a useful or meaningful way. -
Answers True
An example of classification would be a credit card company flagging a transaction as being approved
or potentially being fraudulent and denying payment. - Answers True
The data approach used to characterize the typical behavior of an individual, group or population by
generating summary statistics about the data is referred to as classification. - Answers True
XBRL is a global standard for exchanging financial reporting information that uses XML. - Answers
True
XBRL is used to facilitate the exchange of financial reporting information between the company and
the Securities and Exchange Commission. - Answers True
Data profiling typically involves unstructured data. - Answers False
A target is a manually assigned category applied to a record based on an event. - Answers False
When considering a question such as "Do our customers form natural groups based on similar
attributes?" you would use an unsupervised approach. - Answers True
Co-occurrence grouping is an example of a supervised approach. - Answers False
All of the following are examples of a supervised approach to evaluation data except:
A) Causal modeling
B) Data reduction
C) Link prediction
D) Regression - Answers B
All of the following are examples of an unsupervised approach to evaluation data except:
A) Similarity matching
B) Clustering
C) Profiling
D) Co-occurrence grouping - Answers A
Which of the following best describes an unsupervised approach to the evaluation of data?
A) Data exploration that is free from oversight by a superior
B) Data exploration to examine the relationships between variables that are hypothesized to exist
C) Data exploration looking for potential patterns of interest
D) Data exploration that is conducted with direct oversight by a superior - Answers C
Which of the following best describes a supervised approach to the evaluation of data?
A) Data exploration that is free from oversight by a superior
B) Data exploration that is conducted with direct oversight by a superior
C) Data exploration to examine the relationships between variables that are hypothesized to exist
D) Data exploration looking for potential patterns of interest - Answers C
, Which approach to data analytics attempts to assign each unit in a population into a small set of
categories?
A) Classification
B) Regression
C) Similarity matching
D) Co-occurrence grouping - Answers A
Which approach to data analytics attempts to divide individuals into groups in a useful or meaningful
way?
A) Clustering
B) Data reduction
C) Similarity matching
D) Co-occurrence grouping - Answers A
Which approach to data analytics attempts to identify similar individuals based on data known about
them?
A) Classification
B) Clustering
C) Similarity matching
D) Co-occurrence grouping - Answers C
Which approach to data analytics attempts to discover associations between individuals based on
transactions involving them?
A) Classification
B) Regression
C) Similarity matching
D) Co-occurrence grouping - Answers D
Which approach to data analytics attempts to forecast a relationship between two data items?
A) Link prediction
B) Regression
C) Similarity matching
D) Co-occurrence grouping - Answers A
Which approach to data analytics attempts to predict, for each unit, the numerical value of some
variable?
A) Classification
B) Regression
C) Similarity matching
D) Link prediction - Answers B
Which approach to data analytics attempts to characterize the typical behavior of an individual, group
or population by generating summary statistics about the data?
A) Classification
B) Regression
C) Profiling
D) Link prediction - Answers C
________ refers to data that are stored in a database or spreadsheet that is readily searchable.
A) Training data
B) Unstructured data
C) Structured data
D) Test data - Answers C
Using social media to look for relationships between related parties that are not otherwise disclosed
to identify related party transactions is an example of ________.
A) Classification
B) Regression
C) Profiling
D) Link prediction - Answers D
Data profiling is used to assess data quality and internal controls and typically involves the following
steps except:
A) Filter the results.
B) Identify the objects or activity you want to profile.
C) Determine the types of profiling you want to perform.
Benford's Law is an absolute and all data must conform. - Answers False
A decision tree can be used to divide data into smaller groups. - Answers True
Data reduction is a data approach used to reduce the amount of information that needs to be
considered to focus on the most critical items. - Answers True
Regression is a data approach used to estimate or predict, for each unit, the numerical value of some
variable using some type of statistical model. - Answers True
Link prediction is a data approach used to estimate or predict, for each unit, the numerical value of
some variable using some type of statistical model. - Answers False
Existing data that have been manually evaluated and assigned a class is often referred to as test data.
- Answers False
Co-occurrence grouping could be used to match vendors by geographic region. - Answers True
Fuzzy matching is a data approach used to identify similar individuals based on data known about
them. - Answers False
Alibaba and its attempt to identify seller and customer fraud based on various characteristics known
about them is an example of similarity matching. - Answers True
Fuzzy matching is a computer-assisted technique of finding matches that are less than 100 percent
perfect by finding correspondences between portions of the text of each potential match. - Answers
True
The P in IMPACT Cycle represents performing test plan. - Answers True
Clustering is a data approach used to divide individuals into groups in a useful or meaningful way. -
Answers True
An example of classification would be a credit card company flagging a transaction as being approved
or potentially being fraudulent and denying payment. - Answers True
The data approach used to characterize the typical behavior of an individual, group or population by
generating summary statistics about the data is referred to as classification. - Answers True
XBRL is a global standard for exchanging financial reporting information that uses XML. - Answers
True
XBRL is used to facilitate the exchange of financial reporting information between the company and
the Securities and Exchange Commission. - Answers True
Data profiling typically involves unstructured data. - Answers False
A target is a manually assigned category applied to a record based on an event. - Answers False
When considering a question such as "Do our customers form natural groups based on similar
attributes?" you would use an unsupervised approach. - Answers True
Co-occurrence grouping is an example of a supervised approach. - Answers False
All of the following are examples of a supervised approach to evaluation data except:
A) Causal modeling
B) Data reduction
C) Link prediction
D) Regression - Answers B
All of the following are examples of an unsupervised approach to evaluation data except:
A) Similarity matching
B) Clustering
C) Profiling
D) Co-occurrence grouping - Answers A
Which of the following best describes an unsupervised approach to the evaluation of data?
A) Data exploration that is free from oversight by a superior
B) Data exploration to examine the relationships between variables that are hypothesized to exist
C) Data exploration looking for potential patterns of interest
D) Data exploration that is conducted with direct oversight by a superior - Answers C
Which of the following best describes a supervised approach to the evaluation of data?
A) Data exploration that is free from oversight by a superior
B) Data exploration that is conducted with direct oversight by a superior
C) Data exploration to examine the relationships between variables that are hypothesized to exist
D) Data exploration looking for potential patterns of interest - Answers C
, Which approach to data analytics attempts to assign each unit in a population into a small set of
categories?
A) Classification
B) Regression
C) Similarity matching
D) Co-occurrence grouping - Answers A
Which approach to data analytics attempts to divide individuals into groups in a useful or meaningful
way?
A) Clustering
B) Data reduction
C) Similarity matching
D) Co-occurrence grouping - Answers A
Which approach to data analytics attempts to identify similar individuals based on data known about
them?
A) Classification
B) Clustering
C) Similarity matching
D) Co-occurrence grouping - Answers C
Which approach to data analytics attempts to discover associations between individuals based on
transactions involving them?
A) Classification
B) Regression
C) Similarity matching
D) Co-occurrence grouping - Answers D
Which approach to data analytics attempts to forecast a relationship between two data items?
A) Link prediction
B) Regression
C) Similarity matching
D) Co-occurrence grouping - Answers A
Which approach to data analytics attempts to predict, for each unit, the numerical value of some
variable?
A) Classification
B) Regression
C) Similarity matching
D) Link prediction - Answers B
Which approach to data analytics attempts to characterize the typical behavior of an individual, group
or population by generating summary statistics about the data?
A) Classification
B) Regression
C) Profiling
D) Link prediction - Answers C
________ refers to data that are stored in a database or spreadsheet that is readily searchable.
A) Training data
B) Unstructured data
C) Structured data
D) Test data - Answers C
Using social media to look for relationships between related parties that are not otherwise disclosed
to identify related party transactions is an example of ________.
A) Classification
B) Regression
C) Profiling
D) Link prediction - Answers D
Data profiling is used to assess data quality and internal controls and typically involves the following
steps except:
A) Filter the results.
B) Identify the objects or activity you want to profile.
C) Determine the types of profiling you want to perform.
