CMA Intermediate · Financial Management and Business Data Analytics · Receivable Management
A company analyses its customer data to decide credit limits. Which data-analytics step best addresses the problem of the same customer appearing twice in the receivables file under slightly different spellings of the name?
Data cleaning is the right step. Duplicate customer records with differently spelt names are a data quality problem, solved by removing duplicates and standardising entries. Only after this should the receivables data be visualised, modelled or sampled, otherwise credit limits and default estimates would be distorted.
- AData cleaning by removing duplicates and standardising entriesCorrect
- BData visualisation using a pie chart of balances
- CPredictive modelling of default probability
- DSampling of invoices for ageing analysis
Explanation
Duplicate or inconsistent records are a data quality issue handled in data cleaning and validation, through de-duplication and standardisation. Visualisation, modelling and sampling work on the data after it is cleaned and would give misleading results if duplicates remained.
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