Scenario Review and Threshold Tuning - 2021.11 Class (Final)

Which of the following is true about ATL and BTL?

• Above-the-line test can reveal new true positive alert
• Below-the-line test involve human decision on whether alert is a true positive
• Both ATL and BTL can be done automatically

Which of the following is NOT the tuning Objective?

• Increase Productivity of Alerts
• Increase accuracy of Alerts
• Increase amount of Alerts
• Meet Compliance requirement

Which is the rate to measure Type I error?

• Precision Rate
• Recall Rate
• Accuracy Rate
• Return Rate

What is a benefit of data driven method for customer segmentation?

• Implementation effort is low
• It always give more accurate result
• It takes out bias of domain expert
• Required data may not exist

What distribution does a parameter variable (numeric variable that is compared against threshold for alert condition) usually follows?

• Binomial distribution
• Normal distribution
• Uniform distribution
• Log normal distribution

If a parameter variable (numeric variable that is compared against threshold for alert condition) distribution has multiple peaks, which of the following best describes the situation?

• The contributing customers may contain multiple heterogenous groups that may better be further split for customer segments
• A point between the peaks is a good candidate for optimal threshold
• There is data quality issue that should first be tackled before analysis
• The peak with highest value is the threshold we are looking for

Which of the following is not considered in threshold setting?

• Risk level of the customer
• Customer segmentation
• Alert investigation process
• Transaction type

Which of the following is least important in a scenario review report?

• Alert Generation Process Performance
• Scenario Review Results
• Recommendations
• Scenario Review Approach

If a scenario gives no alert in past 4 months, the following should be examined except for __ ?

• Is the minimum aggregate amount threshold set too high?
• Overall number of transaction of the transaction type in the financial institute
• Customers of the customer segment rarely perform the type of transaction in concern?
• Seasonal factor

If a threshold is at 98%ile of population, what does it mean?

• For this parameter in concern, current scenario configuration covers top 2% of population
• Threshold is 2% lower than the maximum value
• 98% of population is eligible for alert for this alert condition
• If threshold value is increased by 2%, the whold population will be covered