MC	To guarantee maximum independence and organizational impact of analytics, it is important that...	the Chief Data Officer (CDO) or Chief Analytics Officer (CAO) reports to the CIO or CFO.	incorrect	a Chief Data Officer or Chief Analytics officer is added to the executive committee who directly reports to the CEO.	correct	the CIO takes care of all analytical responsibilities.	incorrect	analytics is supervised only locally in the business units. 	incorrect	
MC	Which statement is CORRECT?	To guarantee maximum independence and organizational impact of analytics, it is important that a Chief Data Officer or Chief Analytics officer is added to the executive committee who directly reports to the CEO.	correct	In logistic regression, the doubling amount is equal to log (2) x ?i.	incorrect	Leave-one-out cross-validation on a data set with n observations will result in n-1 analytical models.	incorrect	Featurization in the context of neural networks refers to adding more nodes to the network.	incorrect	
MC	Outlying observations which represent erroneous data are treated using...	missing value procedures.	correct	truncation or capping.	incorrect	
MC	The aim of clustering is to come up with clusters such that the...	homogeneity within a cluster is minimized and the heterogeneity between clusters is maximized.	incorrect	homogeneity within a cluster is maximized and the heterogeneity between clusters is maximized.	correct	homogeneity within a cluster is maximized and the heterogeneity between clusters is minimized.	incorrect	homogeneity within a cluster is minimized and the heterogeneity between clusters is minimized.	incorrect	
MC	Consider a data set with a multiclass target variable as follows: 25% bad payers, 25% poor payers, 25% medium payers and 25% good payers. In this case, the entropy will be:	Minimal	incorrect	Maximal	correct	
MC	Which of the following measures cannot be used to make the splitting decision in a regression tree?	ANOVA/F-test	incorrect	Entropy	correct	Mean Squared Error (MSE)	incorrect	
MC	Which of the following measures cannot be used to make the splitting decision in a regression tree?	ANOVA/F-test	incorrect	Entropy	correct	Mean Squared Error (MSE)	incorrect	
MC	Given the following decision tree:<br><br><img class="img-fluid" src="http://www.pdbmbook.com/static/quiz/fig20_6.png"><br><br>According to the decision tree, an applicant with Income > $50.000 and High Debt=Yes is classified as:	Bad Risk	correct	Good Risk	incorrect	
MC	Which of the following strategies can be used to deal with missing values?	Keep	incorrect	Delete	incorrect	Replace/impute	incorrect	All of these strategies can be applied	correct	
MC	Decision trees can be used in the following applications:	Credit risk scoring, churn prediction and customer profile segmentation	incorrect	Credit risk scoring	incorrect	Credit risk scoring and churn prediction	correct	Credit risk scoring, churn prediction, customer profile segmentation and market basket analysis.	incorrect