Data-Mining Tools Use a Variety of Techniques to Find Patterns

question 110

True/False

Data-mining tools use a variety of techniques to find patterns and relationships in large volumes of information that predict future behavior and guide decision making.

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Definitions:

Aversion to Risk

The inclination to avoid taking risks, preferring safer or more certain outcomes over uncertain ones.

Risk Neutral

An investor who finds the level of risk irrelevant and considers only the expected return of risk prospects.

Expected Return

The weighted average of all possible returns for a given investment, based on probabilities of outcomes.

Standard Deviation

Measures the amount of variability or dispersion around an average, reflecting the risk associated with a variable’s stability in financial contexts.