You Work for a Bank and Are Building a Random

question 33

Multiple Choice

You work for a bank and are building a random forest model for fraud detection. You have a dataset that includes transactions, of which 1% are identified as fraudulent. Which data transformation strategy would likely improve the performance of your classifier?

• A) Write your data in TFRecords.
• B) Z-normalize all the numeric features.
• C) Oversample the fraudulent transaction 10 times.
• D) Use one-hot encoding on all categorical features.

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Definitions:

Assumption Of Risk

A legal doctrine whereby an individual is understood to have knowingly exposed themselves to a dangerous activity or condition and thus cannot seek compensation for resulting injuries.

Voluntarily Entered

A decision or action taken freely and without coercion by an individual or entity.

Per Se

A Latin term often used in law to indicate something that is intrinsically or inherently the case, without needing further proof or qualification.

Foreseeable Misuse

A legal concept referring to the predictable and incorrect use of a product that manufacturers should anticipate and guard against.