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Financial Forensics · End Term · 21 Dec 2025 · September 2025 term

Question 21: Which scenario is likely to occur if a credit risk model…

Question 21

+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.

Show answer

Correct answer

  • C

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

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Question 21 of 40 in the IIT Madras BS Financial Forensics (Financial Forensics) End Term paper sat on 21 Dec 2025, in the September 2025 term (Financial Forensics 18 Dec 25). It carries 1 mark.

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