Which of the Following Is True of Data Mining

question 39

Multiple Choice

Which of the following is true of data mining?

• A) It cannot reflect the past behavior of the system being studied.
• B) It cannot examine the relationships among various factors.
• C) It cannot analyze an observation from multiple perspectives.
• D) It cannot detect a fraudulent transaction with certainty.

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Definitions:

Reported Earnings

The net income that a company reports to its investors and shareholders, often found on its income statement.

Abnormal Earnings

Profits that exceed or fall short of the expected normal return for a given year or period.

Cutting Costs

Refers to actions implemented by a business to reduce expenses and improve profitability.

Abnormal Earnings Approach

A method for valuing a company's worth based on the premise that stock prices are influenced by differences between the expected and actual earnings, adjusted for the cost of capital.