Preview Questions Data Analyst | Role Specific Skill

Question 1: Which of the following is a key assumption of linear regression that must be checked to ensure the validity of the model in credit risk analysis?

Which action should you take?

Choose only one option

The dependent variable is categorical

The residuals are normally distributed

The model includes all possible interaction terms

There is no relationship between the independent variables and the dependent variable

Question 2: How can you handle currency conversion when generating a report that compares transactions in different currencies for a financial institution?

Which action should you take?

Choose only one option

Use a fixed exchange rate for all transactions

Normalize all data to USD

Apply conversion rates to each transaction

Ignore currency differences

Question 3: Which of the following database indexing strategies would improve performance when querying loan amounts greater than $100,000 in BFSI data?

Which action should you take?

Choose only one option

Create an index on the loan amount column only

Use composite indexes on loan amount and loan status

Use no indexing and rely on full table scans

Create an index on the loan customer ID

Question 4: Which document should be prepared to summarize the assumptions and limitations when using a machine learning model for credit scoring?

Which action should you take?

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Model validation report

Risk assessment document

Project plan

Technical report

Question 5: In Python's scikit-learn library, which function is used to split the dataset into training and testing sets?

Which action should you take?

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data_split()

split_dataset()

divide_train_test()

train_test_split()

Question 6: What is the key benefit of using database sharding in large financial services databases?

Which action should you take?

Choose only one option

Improved query performance through distributed storage

Simpler database backups

Reduced need for indexing

Easier data encryption