Deloitte Senior Solution Advisor Interview Questions and Answers

PCA, Linear Regression, and Credit Card Fraud Explanation

• PCA (Principal Component Analysis) is a technique used for dimensionality reduction by transforming data into a new coordinate system

• Linear Regression is a statistical method used to model the relationship between a dependent variable and one or more independent variables

• Credit card fraud detection involves using machine learning algorithms to identify fraudulent...read more

PCA and LR are machine learning techniques used for dimensionality reduction and regression, respectively.

• PCA (Principal Component Analysis) is used for dimensionality reduction by transforming data into a lower-dimensional space while retaining as much variance as possible.

• LR (Linear Regression) is a supervised learning algorithm used for predicting continuous values based on input features by fitting a linear equatio...read more

Credit risk management involves assessing and mitigating the risk of borrowers defaulting on their loans.

• Credit risk management involves evaluating the Probability of Default (PD), Loss Given Default (LGD), and Exposure at Default (EAD) of borrowers.

• PD refers to the likelihood of a borrower defaulting on their loan.

• LGD represents the amount of loss incurred if a borrower defaults.

• EAD is the total amount that a lender i...read more