CH 5

In the Cabela's case study, the SAS/Teradata solution enabled the direct marketer to better identify likely customers and market to them based mostly on external data sources.

• F

• T

The cost of data storage has plummeted recently, making data mining feasible for more firms.

• T

• F

Data mining can be very useful in detecting patterns such as credit card fraud, but is of little help in improving sales.

• F

• T

The entire focus of the predictive analytics system in the Infinity P&C case was on detecting and handling fraudulent claims for the company's benefit.

• F

• T

If using a mining analogy, "knowledge mining" would be a more appropriate term than "data mining."

• T

• F

Data mining requires specialized data analysts to ask ad hoc questions and obtain answers quickly from the system.

• F

• T

Ratio data is a type of categorical data.

• F

• T

Interval data is a type of numerical data.

• T

• F

In the Memphis Police Department case study, predictive analytics helped to identify the best schedule for officers in order to pay the least overtime.

• F

• T

In data mining, classification models help in prediction.

• T

• F