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1. A data scientist is building a linear regression model in Snowflake to predict customer churn based on structured data stored in a table named 'CUSTOMER DATA'. The table includes features like 'CUSTOMER D', 'AGE, 'TENURE MONTHS', 'NUM PRODUCTS', and 'AVG MONTHLY SPEND'. The target variable is 'CHURNED' (1 for churned, 0 for active). After building the model, the data scientist wants to evaluate its performance using Mean Squared Error (MSE) on a held-out test set. Which of the following SQL queries, executed within Snowflake's stored procedure framework, is the MOST efficient and accurate way to calculate the MSE for the linear regression model predictions against the actual 'CHURNED values in the 'CUSTOMER DATA TEST table, assuming the linear regression model is named 'churn _ model' and the predicted values are generated by the MODEL APPLY() function?
A)
B)
C)
D)
E) 
2. You're building a fraud detection model and want to determine if the average transaction amount for fraudulent transactions is significantly higher than the average transaction amount for legitimate transactions. You have two tables in Snowflake:
'FRAUDULENT TRANSACTIONS and 'LEGITIMATE TRANSACTIONS, both with a 'TRANSACTION AMOUNT column. You believe that FRAUDULENT TRANSACTIONS contains fewer than 30 transactions. You don't know the population standard deviations. What are the proper steps to conduct the hypothesis test, and what is the correct hypothesis statement?
A) Perform a t-test. Null Hypothesis: The average transaction amount for fraudulent transactions is equal to the average transaction amount for legitimate transactions. Alternative Hypothesis: The average transaction amount for fraudulent transactions is not equal to the average transaction amount for legitimate transactions.
B) Perform a chi-squared test. Null Hypothesis: There is no relationship between transaction amount and whether a transaction is fraudulent. Alternative Hypothesis: There is a relationship between transaction amount and whether a transaction is fraudulent.
C) Perform a t-test. Null Hypothesis: The average transaction amount for fraudulent transactions is less than or equal to the average transaction amount for legitimate transactions. Alternative Hypothesis: The average transaction amount for fraudulent transactions is greater than the average transaction amount for legitimate transactions.
D) Perform a Z-test. Null Hypothesis: The average transaction amount for fraudulent transactions is less than or equal to the average transaction amount for legitimate transactions. Alternative Hypothesis: The average transaction amount for fraudulent transactions is greater than the average transaction amount for legitimate transactions.
E) Perform a Z-test. Null Hypothesis: The average transaction amount for fraudulent transactions is equal to the average transaction amount for legitimate transactions. Alternative Hypothesis: The average transaction amount for fraudulent transactions is not equal to the average transaction amount for legitimate transactions.
3. You're developing a model to predict equipment failure using sensor data stored in Snowflake. The dataset is highly imbalanced, with failure events (positive class) being rare compared to normal operation (negative class). To improve model performance, you're considering both up-sampling the minority class and down-sampling the majority class. Which of the following statements regarding the potential benefits and drawbacks of combining up-sampling and down-sampling techniques in this scenario are TRUE? (Select TWO)
A) The optimal sampling ratio for both up-sampling and down-sampling must always be 1:1, regardless of the initial class distribution.
B) Combining up-sampling and down-sampling can lead to a more balanced dataset, potentially improving the model's ability to learn patterns from both classes without introducing excessive bias from solely up-sampling.
C) Over-sampling, combined with downsampling, makes the model more prone to overfitting since this causes the model to train on a large dataset.
D) Down-sampling, when combined with up-sampling, can exacerbate the risk of losing important information from the majority class, leading to underfitting, especially if the majority class is already relatively small.
E) Using both up-sampling and down-sampling always guarantees improved model performance compared to using only one of these techniques, regardless of the dataset characteristics.
4. You are a data scientist working for a retail company that stores its transaction data in Snowflake. You need to perform feature engineering on customer purchase history data to build a customer churn prediction model. Which of the following approaches best combines Snowflake's capabilities with a machine learning framework (like scikit-learn) for efficient feature engineering? Assume your data is stored in a table named 'CUSTOMER TRANSACTIONS' with columns like 'CUSTOMER ID, 'TRANSACTION DATE, 'AMOUNT, and 'PRODUCT CATEGORY.
A) Extract all the data from 'CUSTOMER_TRANSACTIONS' into a Pandas DataFrame, perform feature engineering using Pandas and scikit-learn, and then load the processed data back into Snowflake.
B) Use Snowflake's SQL UDFs (User-Defined Functions) written in Python to perform feature engineering directly within Snowflake on smaller aggregated sets of data to optimize compute costs. Integrate these UDFs to query the entire 'CUSTOMER TRANSACTIONS table to build your features.
C) Load a small subset of 'CUSTOMER_TRANSACTIONS' into an in-memory database like Redis, perform feature engineering using custom Python scripts interacting with Redis, and periodically sync the results back to Snowflake.
D) Develop a custom Spark application to read data from Snowflake, perform feature engineering in Spark, and write the resulting features back to a new table in Snowflake, and avoid use of Snowflake SQL UDFs to minimize complexity.
E) Create a Snowflake external function that calls a cloud-based (AWS, Azure, GCP) machine learning service for feature engineering, passing the raw transaction data for each customer and processing the aggregated data into features in Snowflake SQL.
5. A data science team is evaluating different methods for summarizing lengthy customer support tickets using Snowflake Cortex. The goal is to generate concise summaries that capture the key issues and resolutions. Which of the following approaches is/are appropriate for achieving this goal within Snowflake, considering the need for efficiency, cost-effectiveness, and scalability? (Select all that apply)
A) Developing a Python UDF that leverages a pre-trained summarization model from a library like 'transformers' and deploying it in Snowflake. Managing the model loading and inference within the UDF.
B) Employing a SQL-based approach using string manipulation functions and keyword extraction techniques to identify important sentences and concatenate them to form a summary.
C) Calling the Snowflake Cortex 'COMPLETE' endpoint with a detailed prompt that instructs the model to summarize the support ticket, explicitly specifying the desired summary length and format.
D) Creating a custom summarization model using a transformer-based architecture like BART or T5, training it on a large dataset of support tickets and summaries within Snowflake using Snowpark ML, and then deploying this custom model for generating summaries via a UDF.
E) Using the 'SNOWFLAKE.ML.PREDICT' function with a summarization task-specific model provided by Snowflake Cortex, passing the full ticket text as input to generate a summary.
Solutions:
| Question # 1 Answer: E | Question # 2 Answer: C | Question # 3 Answer: B,D | Question # 4 Answer: B | Question # 5 Answer: C,E |
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