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Financial Forensics · End Term · 13 Apr 2025 · January 2025 term · Set 1

Question 5: A Fraud detection model a FinTech company is put to produ…

Question 5

+1 markOne correct option

A Fraud detection model a FinTech company is put to production which is used for flagging suspicious transactions from going through the company’s payment system. On a given day the 500 transaction attempts were made in the company’s payment system, and the ML model has declined all the transaction attempts on the grounds of Fraud, upon taking a manual review it was noticed that all the 500 transaction attempts were indeed genuine. Now which of the following statement is True about the model.

  1. A

    Precision = 100%

  2. B

    Recall = 100%

  3. C

    Recall is Undefined

  4. D

    Recall = 0%

  5. E

    Precision is Undefined

Show answer

Correct answer

  • C

    Recall is Undefined

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Question 5 of 32 in the IIT Madras BS Financial Forensics (Financial Forensics) End Term paper sat on 13 Apr 2025, in the January 2025 term (IIT M IMPROVEMENT FN EXAM QIM2 13 Apr). It carries 1 mark.

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