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ACCA Applied Knowledge · Business and Technology · Financial systems and technology

A bank uses a technique that automatically searches very large datasets to uncover previously unknown patterns, such as unusual combinations of transactions that often precede fraud. Which term best describes this technique?

The technique is data mining. It searches large datasets with algorithms to uncover previously unknown patterns or relationships, such as transaction combinations linked to fraud. Validation, batch processing and backup deal with data quality, processing method and recovery rather than pattern discovery.

  1. AData miningCorrect
  2. BData validation at input
  3. CBatch processing
  4. DData backup

Explanation

Data mining uses algorithms to discover hidden patterns and relationships in large datasets, without a predefined hypothesis. Validation checks data at entry, batch processing groups transactions for later processing, and backup copies data for recovery; none uncovers new patterns.

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