Only one of the following statements is true. Which one?

Question

BlackTom AI · Accepted Answer

Repetition and careful evaluation of each statement are essential here since only one is true.
Option 1: 'ADAs used on past data cannot be deployed in continuous auditing.' This is generally false because if ADAs were built from past data, they can often be deployed in ongoing or continuous auditing contexts to monitor ongoing activity, assuming proper data pipelines and governance. The blanket claim that they cannot be deployed ignores practical workflows and updates that keep models aligned with current data.
Option 2: 'ADAs used on past data are not reliable for sensitivity analyses.' Sensitivity analyses typically rely on understanding how results change with variations in inputs; past-data-based ADAs can be informative for such analyses, especially when designed to test how outcomes respond to parameter shifts. Saying they are not reliable disregards the role these analyses play and the careful design that may support them.
Option 3: 'ADAs used on past data cannot be re-applied to new data.' In many analytic paradigms, models or ADAs are designed to be updated or re-applied to new data streams, with recalibration or retraining as needed. The claim that they cannot be re-applied is too absolute and ignores common practice of applying learned patterns to new data with adjustments.
Option 4: 'ADAs used on past data can be used to perform what-if analysis on new proposals.' This statement aligns with the intended use of many adaptive data analytics approaches: leveraging patterns learned from historical data to simulate outcomes under hypothetical new scenarios, i.e., what-if analyses. It reflects the transferable insight aspect of ADAs when properly validated and updated. Therefore, this option is the true statement.
Thus, the only statement that holds under typical interpretations of ADAs and their applicability to new scenarios is Option 4. The other options overgeneralize or dismiss capabilities that are commonly possible with past-data ADAs when properly managed.

Only one of the following statements is true. Which one?Single choice

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