Question

Probability of theft in an area is 0.03 with expected loss of 20% or 30% of things with probabilities 0.55 and 0.45. Insurance policy from A costs $150 pa with 100% repayment. Policy with B, costs $100 pa and first $500 of any loss has to be paid by the owner. Which data mining technique can be used to choose the policy?

Answer 1

The data mining technique to be used in this problem is :

DECISION TREES

Reasons:

1.) Decision trees involves primarily classification and prediction.

2.) It is also used as a selection criteria.

3.) It is also used to support the use and selection of specific data within the overall structure.

In decision trees we big in with a question, for instance in our case we can have what is the probability of theft? When this theft occurs, what are the losses incurred?

To cover this losses which policy should we take.

Now to make a decision we should find which policy will minimize the cost in case this happens.

For instance in our case we will choose policy A since despite a higher premium it offers 100% premium meaning in case all is lost, the company does not need to pay any amount. Meaning it covers even smaller losses.

Answer 2

Explanation:

Strobe based communication and handshake based communication are asynchronous data transmission. ... The handshake can either be initiated by a source or a destination. THE DIFFERENCE BETWEEN THE TWO. Strobe uses a single control line signal to time each transfer whereas handshake uses two control signals.