Business Analytics Quiz
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FOUNDATIONS OF BUSINESS ANALYTICS
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A bank is setting the operating threshold for a fraud-detection model. The analytics team estimates fraud losses and false-positive rates, the investigations unit can review no more than 2,0002{,}000 alerts per day, compliance can veto thresholds that violate regulatory requirements, and customer service expects complaints from legitimate customers whose transactions are blocked. The governance charter assigns the chief operating officer final authority over the business trade-off. A proposed threshold is legally compliant and stays within review capacity, but it may produce more customer complaints than the current process.
Who should make the final decision about whether the expected fraud reduction justifies the customer-service impact?
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