In Estimating the Accuracy of Data Mining (Or Other) Classification

question 59

Multiple Choice

In estimating the accuracy of data mining (or other) classification models, the true positive rate is

• A) the ratio of correctly classified positives divided by the total positive count.
• B) the ratio of correctly classified negatives divided by the total negative count.
• C) the ratio of correctly classified positives divided by the sum of correctly classified positives and incorrectly classified positives.
• D) the ratio of correctly classified positives divided by the sum of correctly classified positives and incorrectly classified negatives.

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Definitions:

Operating Assets

Assets used by a business in its day-to-day operations to generate income, including equipment, property, and inventory.

Operating Assets

Assets used by a business in its operational activities to generate revenue, excluding investments and non-operating assets.

Residual Income

The income that exceeds the minimum required return on investment or capital; often used in performance measurement and evaluation.

Minimum Required Rate

The lowest return on investment that a company or individual deems acceptable, often used in financial analysis and capital budgeting.