5. How does Benford’s law provide an expectation of any set of naturally occurring collections of numbers? 6. Identify a reason the sales amount of any single product may or may not follow Benford's law. 7. Name three clusters of customers who might shop at Walmart. 8. In Exhibit 3-12, Cluster 1 of the group insurance highlighted claims have a long period from death to payment dates. Why would that cluster be of interest to internal auditors? PREDICTIVE ANALYTICS LO 3-4 Understand the techniques associated with predictive analytics, including regression and classification. Before we discuss predictive analytics, we need to bring you up to speed on some data-specific terms: © A target is an expected attribute or value that we want to evaluate, For example, if we are trying to predict whether a transaction is fraudulent, the target might be a specific “fraud score.” If we're trying to predict an interest rate, the target would be “interest rate.” The target is usually referred to as the dependent variable in a regression analysis. © A class is a manually assigned category applied to a record based on an event. For example, if the credit department has rejected a credit line for a customer, the credit department assigns the class “Rejected” to the customer’s master record. Likewise, if the internal auditors have