Data Science Exploration Financial Wellness

Answer Key for "Financial Wellness (Data Science Exploration) Post Assessment"

Generated on February 01, 2022

What do you need to write to create an automated process?

1. A correlation

2. A customer segmentation

3. An algorithm

4. An A/B test

In process improvement, an algorithm is commonly used to create

1. an automated process

2. An A/B test

3. Data mining

4. Sentiment analysis

Which is an example of an automated process?

1. When sentiment analysis tells you what customers think of a new service.

2. When a data analyst uses data mining.

3. When a data analyst reviews A/B testing results.

4. When a program sends messages to specific customers based on data.

A financial institution wants to do A/B testing, with messages about linking checking and savings accounts. If their A group is customers who have both a checking and savings account, what should be their B group?

1. Former customers of the institution.

2. Customers who have high transactions.

3. Customers who have only checking or savings.

   

4. Customers who have more money in checking than savings.

A financial institution did A/B testing, sending messages advertising a new type of savings account. Group A were customers who had few transactions per month.

Group B had many transactions per month. What are they trying to learn?

1. Whether customers with more savings are more likely to use the new type of savings account

   

2. Whether customers who make more transactions each month are more likely to use the new type of

   savings account

3. Whether customers who use a new type of savings account are more likely to have more savings

4. Whether customers who use a new type of savings account are more likely to make more transactions each month

A financial institution sent messages about strong financial habits to two groups. Group A received the messages via email on a weekday morning. Group B received

the messages via the bank's app when they signed in. What was the institution trying to determine with their A/B testing?

1. The best method to reach their customers about financial habits.

2. How many customers already had good financial habits.

3. Whether a customer who used a banking app was likely to have strong financial habits.

4. How many customers use email.

How can sentiment analysis be used to improve customer experience?

1. It can provide qualitative data about customers' preferences.

2. It can provide quantitative data about customers' preferences.

3. It can help automate processes for customers.

4. It can provide correlations between customers and types of products used.

What method can provide qualitative data about customers' experiences to help an organization improve?

1. Data mining

2. Customer segmentation

3. Correlation

4. Sentiment analysis

What kind of data can an institution gather from sentiment analysis to improve customer experience?

1. Quantitative data

   

2. Qualitative data

3. Data mining

4. Correlations

A financial institution discovers a correlation between using an auto-transfer feature and better savings habits. How can they use that information to improve customer experience?

1. They can advertise their auto-transfer feature to people who aren't yet customers.

2. They can advertise checking accounts to their better saving customers.

   

3. They can suggest their auto-transfer feature to customers with lower savings.

4. They can suggest to customers with higher savings that they invest more.

A financial institution discovers a positive correlation between poor budgeting skills and high debt. How can they use that information to improve their customer experience?

1. They can recommend their budgeting app to all customers.

2. They can recommend their budgeting app to new customers.

   

3. They can recommend their budgeting app to customers who have higher debt.

4. They can suggest to customers with higher debt that they use fewer credit cards.

A financial institution discovers a positive correlation between better investment growth and diversification. How can they use that information to improve their customer experience?

1. They can recommend that customers who have limited investments work with a financial advisor to

   

   diversify.

2. They can recommend to customers without investments that they start investing.

3. They can recommend to customers with diverse investments that they invest more.

4. They can recommend that new customers immediately start investing.

Why is data mining useful?

1. It is a way of grouping customers by characteristics.

   

2. It is a way to find patterns in data.

3. It is a way to automate processes.

4. It is a way to gather sentiment analysis.

What does data mining help discover?

1. Patterns

2. Customer groups

3. How to automate processes

4. Sentiment analysis

What helps data scientists find patterns in data?

1. Data cleaning

2. Automated processes

3. Customer surveys

4. Data mining

Data mining shows that when customers use a budgeting app, their savings are usually higher, their debt is usually lower, and they sometimes have student loans. What is correlated with using a budgeting app?

1. Higher savings

2. Higher debt

3. Higher savings, lower debt and student loans.

4. Higher savings and lower debt

Data mining shows that customers with many investments tend to have higher savings and customers with few investments tend to have lower savings. Various levels of debt were found across all types of investments. What is correlated with investments?

1. Diversification

2. Savings

3. Debt

4. Savings and debt

Data mining shows that customers with high student loans tend to have credit card debt. They also tend to have low retirement accounts. What is correlated with student loans?

1. Credit card debt

2. retirement account balance

3. Credit card debt and retirement account balance

4. Nothing

What is customer segmentation?

1. The algorithm that allows an automated process.

2. The process of dividing a group of customers into smaller sub-groups, based on similarities within

   the sub-groups.

3. The process of finding patterns within customer data.

4. The use of A/B testing to determine customer preferences.

What is the process of dividing a group of customers into smaller sub-groups, based on similarities within the sub-groups?

1. Customer segmentation

2. A/B testing

3. Sentiment analysis

4. Data mining

In customer segmentation, you divide groups of customers into smaller sub-groups based on

1. Preferences discovered during A/B testing

2. Sentiment analysis

3. Customer surveys

4. Similarities within the sub-groups

A financial institution wants to know who is most likely to benefit from a new type of savings account. Which is the best way to segment customers?

1. By what day they tend to use the institution's services.

   

2. By savings account usage and balance.

3. By how often they use the institution

4. By whether or not they invest

A financial institution wants to know who is most likely to use their credit card. Which is the best way to segment customers?

1. By amount of debt

   

2. By number of credit cards

3. By amount of savings

4. By credit score

A financial institution wants to know who is most likely to use an auto-transfer feature from checking to savings. Which is the best way to segment customers?

1. By savings account use

2. By checking account use

   

3. By both savings and checking account use

4. By amount of transactions each month

Which are common financial obstacles faced by newly financially independent adults?

1. Low savings accounts

2. High expenses to income ratio

3. Not enough savings and high expenses to income ratio

4. Too much money in retirement instead of savings

A high expenses to income ratio and low savings amount are

1. Common obstacles for newly financially independent adults

2. Common obstacles for retired individuals

3. A sign of too much debt

4. A sign of financial strength

Financial obstacles such as high expenses to income ratio and not enough savings can lead to

1. Low interest rates

2. High savings accounts

3. High credit score

4. Fewer financial opportunities

A newly independent adult wants to increase the amount of money they have in their savings account. What should they consider?

1. Using a retirement match

2. Using auto-transfer from their checking to savings account

3. Diversifying their investments

4. Paying off their debt in full

A newly independent adult wants to grow their net worth faster. Which of these will help?

1. Consistently putting aside savings and having diversified investments

2. Putting more on credit instead of paying cash

3. Focusing on paying off all debt before saving

4. Putting more on credit instead of paying cash and consistently putting aside savings

A newly independent adult wants to decrease their debt. Which of these will help?

1. Use auto-transfer from checking to savings account

2. Use a retirement match

3. Spread purchases out over multiple credit cards

4. Use strategies to avoid emotional spending