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 transactions based on patterns and anomalies in the data

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 is exposed to in case of borrower default.

• By analyzing thes...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 equation to the data.

• PCA can be used as a preprocessing step befo...read more