Financial Forensics · End Term · Jan 2023 · FN

THERE IS NO BIG DATA AND BIOLOGICAL NETWORKS QP IN FORENOON SESSION

A company is facing a lawsuit from a customer. It is possible, but not probable, that the company will have to pay a settlement that management estimates to be ₹3,000,000. How would this fact be reported in the financial statements to be issued at the end of the current month?

Total cash inflow in the operating section of the statement of cash flows should include which of the following?

If average total assets increase, but net income, net sales, and average stockholders' equity remain the same, what is the impact on the return on assets ratio?

You have observed that the net profit margin ratio for a retail chain has increased steadily over the last three years. The most likely explanation is which of the following?

Which of the following is false regarding the balance sheet?

Which of the following would not appear in the investing section of the statement of cash flows?

You have been offered a job that pays an annual salary of ₹48,000, ₹51,000, and ₹55,000 over the next three years, respectively. The offer also includes a starting bonus of ₹2,500 payable immediately. What is this offer worth to you today at a discount rate of 6.5 percent?

Wilson's Market is considering two mutually exclusive projects that will not be repeated. The required rate of return is 13.9 percent for Project A and 12.5 percent for Project B. Project A has an initial cost of ₹54,500, and should produce cash inflows of ₹16,400, ₹28,900, and ₹31,700 for Years 1 to 3, respectively. Project B has an initial cost of ₹69,400, and should produce cash inflows of ₹0, ₹48,300, and ₹42,100, for Years 1 to 3, respectively. Which project, or projects, if either, should be accepted and why?

Phil's Carvings wants to have a weighted average cost of capital of 9.5 percent. The firm has an aftertax cost of debt of 6.5 percent and a cost of equity of 12.75 percent. What debt-equity ratio is needed for the firm to achieve its targeted weighted average cost of capital?

Consolidated Transfer is an all-equity financed firm. The beta is .75, the market risk premium is 7.78 percent, and the risk-free rate is 3.84 percent. What is the expected rate of return on this stock?

Which of the following is the process of converting words into their base or root form?

Input – Artificial intelligence technologies are being increasingly integrated into various industries to automate and optimize processes. Output – Artificial intelligence technology be be increase integrate into various industry to automate and optimize process. Which of the following pre-processing to input results in this output?

As given in the confusion matrix of the classifier in Table 1, a bank provides loan to 300 prospects from a database. Selection of an actual good customer leads to an average profit of ₹12,000. Due to misclassification, if a bad applicant is selected for loan, an average loss of ₹40,000 will be incurred. Based on the data given in the confusion matrix (Table 1), what is the overall profit?

What is the number of False Positives? PS: 1 is positive class, 0 is negative class

What is the rollback rate for A?

What is the roll forward rate for B?

What is the capture rate of B at top 30% (top 3 deciles)?

Y is a metric that is used to decide if a model has to be trained again. It captures the change in environment in which model was trained relative to the environment in which the model is deployed. What is Y?

Chennai Super Kings (CSK) team in IPL has trained a model using past IPL data to predict toss decision by taking ground factors, weather, team and time details. The PSI of the model in IPL 2023 is 0.13. Which of the following should be CSK’s next steps?

Joey had taken a credit of 200$ from the Chandler Bank. He had missed 3 instalments in total in the last 6 months and he has paid his 5\(^{th}\) month instalment and missed to pay the 6\(^{th}\) month instalment. Which of the following delinquency buckets he fall into?

Which of the following performance metric is more suitable for the business problem below: A fintech company wants to build a fraud detection model that prevents fraudulent transactions happening in its ecosystem. The company is very particular about customer satisfaction and so they are very particular about not stopping a genuine customer in completing their transaction, but they are reasonably fine to flag a fraudulent transaction as a good transaction.

A fintech company has a ML system that identifies transaction frauds that occur in its system. The model currently has an accuracy of 99.9%. The fraud rate, as reported by the company in its system is 20 BPS. On a regular day there are close to above 1 million transactions that happens via the company’s payment system and for each fraudulent transaction the company losses INR 10 on an average. The annual savings (INR) brought in by the ML system is:

For the given confusion matrix below which of the following is True assuming Fraud as positive class and non-Fraud as negative class?

F1 score for the above confusion matrix is:

The following are the number of payments attempts on a regular day that a fintech giant is seeing in its platform. You are hired as a data scientist to find the pattern in the login attempts and you decide to perform a MLE with a gaussian distribution as an assumption. Which of these correctly represents the parameters of the normal distribution based on MLE for the given data: # payment attempts = 10,15,2,12,20,25,14,30,8,11,13

In isolation forest the points that are easy to separate from other points form the anomalies:

What is the purpose of differencing in time series analysis?

Which of the following statements are true with respect to ACF and PACF plots I. ACF plots are used to determining the order of Autoregressive models. II. PACF plots are used to determining the order of Autoregressive models. III. ACF plots just computes the Pearson’s correlation between the variable and it’s lagged versions. IV. PACF plots just computes the Pearson’s correlation between the variable and it’s lagged versions.

Which of the following metrics can be used for computing the performance of an Auto-Regressive time series model.

An autoregressive model of order 3 is denoted by which of the following equations?

There are two time series models A and B which have the following predictions, which of these is more accurate from the perspective for MSE? True value = [10, 12, 11, 15, 18, 20, 23] Predictions of A = [7, 11, 15, 15, 16, 19, 30] Predictions of B = [10, 11, 20, 16, 18, 25, 23]

You have the following 2 documents with the text: D1 = Lets change the logo of the company. D2 = The investors don’t like if the logo of the company is changed as logo plays a key role in brand recognition The Term Frequency (TF) for the work “logo” for D1 and D2 is

The following metrics can be used to calculate string similarity:

If cosine similarity between two string vectors is high, it means

You had converted two words to a vectors having following values: A = [2,1,2,2,9] B = [3,4,2,5,5] The cosine similarity between them is:

You had converted two words to a vectors having following values: A = [2,1,4,2,9] B = [3,4,3,5,5] The cosine similarity between them is:

_________ explainability lets the model owner determine to what extent each feature contributes to how the model makes its predictions over all of the data.

In the following waterfall plot , identify the base value (explainer expected value):

Which “feature_perturbation” technique is used by default when there is no data provided to shap Tree explainer object.

From the following feature powerset , evaluate the ‘w3’ , weight of the marginal coalition.

Which of the following plot is used for global interpretation of a model?