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Financial Forensics · End Term · 1 Sept 2024 · May 2024 term · Set QDB1

Question 14: Which scenario is likely to occur if a credit risk model…

Question 14

+1 markOne correct option

Which scenario is likely to occur if a credit risk model is optimized solely for high recall?

  1. A

    Most non-risky customers will be correctly identified.

  2. B

    Most risky customers will be correctly identified.

  3. C

    Many non-risky customers will be incorrectly labeled as risky.

  4. D

    Many risky customers will be incorrectly labeled as non-risky.

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Correct answer

  • C

    Many non-risky customers will be incorrectly labeled as risky.

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Question 14 of 41 in the IIT Madras BS Financial Forensics (Financial Forensics) End Term paper sat on 1 Sept 2024, in the May 2024 term (IIT M DEGREE AN EXAM QDB3 01 Sep 2024). It carries 1 mark.

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