A Financial Company Is Trying to Detect Credit Card Fraud

question 120

Multiple Choice

A financial company is trying to detect credit card fraud. The company observed that, on average, 2% of credit card transactions were fraudulent. A data scientist trained a classifier on a year's worth of credit card transactions data. The model needs to identify the fraudulent transactions (positives) from the regular ones (negatives) . The company's goal is to accurately capture as many positives as possible. Which metrics should the data scientist use to optimize the model? (Choose two.)

• A) Specificity
• B) False positive rate
• C) Accuracy
• D) Area under the precision-recall curve
• E) True positive rate

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Definitions:

Signaling Molecule

A chemical that is involved in transmitting information between or within cells, often triggering physiological changes.

Erection

The physiological process by which certain tissues in the body, such as the penis or clitoris, become enlarged and firm, typically as a result of sexual arousal or stimulation.

Viagra

A medication commonly used to treat erectile dysfunction (ED) by increasing blood flow to the penis.

Epinephrine

A hormone and neurotransmitter, also known as adrenaline, that increases heart rate, contracts blood vessels, dilates air passages, and participates in the fight-or-flight response of the sympathetic nervous system.