ML functional performance metrics · Question 48 of 60
In fraud detection, both missed fraud cases and false alarms are expensive. Which metric is suitable as a single summary criterion?
1 answer is correct. Hard
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Answer
- D F1-score
Explanation
The F1-score is the harmonic mean of precision and recall. A high value means that both false positives and false negatives have minimal impact. Recall alone does not take false alarms into account, precision alone not missed cases, and accuracy can be high despite many errors when fraud is rare.