Quiz Space

Financial Forensics · End Term · 3 Sept 2023 · May 2023 term · Set QPE1-S1

Question 22: A Fraud detection model a FinTech company is put to prod…

Question 22

+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

Video solution

The video solution to this question is being recorded and will play here. Until then, the answer key is above.

See the whole paperTake it as a mock test

Question 22 of 40 in the IIT Madras BS Financial Forensics (Financial Forensics) End Term paper sat on 3 Sept 2023, in the May 2023 term (IIT M DEGREE ET1 EXAM QPE1 S2 03 Sep). It carries 1 mark.

This question was also asked in

More questions from this paper

  1. Q1Nu-Tools plans to set aside an equal amount of money each year, starting today, so that it will have ₹ 25,000 saved at …
  2. Q2One year ago, the Jenkins Family Fun Center deposited ₹ 4,300 into an investment account for the purpose of buying new …
  3. Q3Rossdale Flowers has a new greenhouse project with an initial cost of ₹ 297,500 that is expected to generate cash flows…
  4. Q4You desire a portfolio beta of 1.1. Currently, your portfolio consists of ₹ 100 invested in Stock A with a beta of 1.4 …
  5. Q5A firm has debt of ₹ 7,000, equity of ₹ 12,000, a cost of debt of 7 percent, a cost of equity of 14 percent, and a tax …
  6. Q6Which of the following ratios is used to analyze profitability?
  7. Q7At the end of the financial period, how would an excess payment of taxes beyond its obligation be presented in the fina…
  8. Q8Which of the following would not appear in the investing section of the statement of cash flows?
  9. Q9While recording transactions the accountants of a firm mistakenly treats a capital expenditure items as revenue expendi…
  10. Q10Issued common stock for ₹ 18,000, sold office equipment for ₹ 1,200, paid cash dividends of ₹ 4,000, purchased investme…
  11. Q11Which of the following is the process of converting words into their base or root form?
  12. Q12Input – Artificial intelligence technologies are being increasingly integrated into various industries to automate and …
  13. Q13As given in the confusion matrix of the classifier in Table 1, a bank provides loan to 300 prospects from a database. S…
  14. Q14What is the number of False Negatives?\ PS: 1 is positive class, 0 is negative class
  15. Q15What is the rollback rate for A? | | After 18 MOB | | | | | | | | | | | |---|---|---|---|---|---|---|---|---|---|---|--…
  16. Q16What is the roll forward rate for B? | | After 18 MOB | | | | | | | | | | | |---|---|---|---|---|---|---|---|---|---|--…
  17. Q17How many applicants were in 0-29 DPD after 12 MOB? | | After 18 MOB | | | | | | | | | | | |---|---|---|---|---|---|---|…
  18. Q18What is the capture rate at top 30% (top 3 deciles)? | Decile | min_prob | max_prob | events | nonevents | event_rate |…
  19. Q19What is the KS of the below gains table? | Decile | min_prob | max_prob | events | nonevents | event_rate | nonevent_ra…
  20. Q20Y is a metric that is used to decide if a model has to be trained again. It captures the change in environment in which…
  21. Q21Let’s say you are bestowed with the responsibility of building an ML model for a popular fintech company for credit lin…
  22. Q23Which of the following statement is incorrect?
  23. Q24Fill the missing information to complete the confusion matrix below: Actual Class | Predicted Class | Fraud | Non - Fra…
  24. Q25Presence of outliers will have a bad impact on Isolation Forest Algorithm, so they must be removed first before fitting…
  25. Q26A fintech company has a ML system that identifies transaction frauds that occur in its system. The model currently has …
  26. Q27What is the purpose of the Dickey-Fuller test in time series analysis?
  27. Q28You have built a linear regression model for predicting the number of users who access your payment platform daily. The…
  28. Q29There are two time series models A and B which have the following predictions, which of these is more accurate from the…
  29. Q30What does the autocorrelation function (ACF) measure in time series analysis?
  30. Q31You have the following 2 documents with the text:\ D1 = Get Out Get Going\ D2 = Get along with the crowd\ The Term Freq…
  31. Q32The following metrics cannot be used to calculate string similarity:
  32. Q33If cosine similarity between two string vectors is high, it means
  33. Q34You had converted two words to a vectors having following values:\ A = [1,4,6,8,2]\ B = [1,3,6,9,0]\ The cosine similar…
  34. Q35You had converted two words to a vectors having following values:\ A = [1,2,3,4,5]\ B = [5,4,3,2,1]\ The cosine similar…
  35. Q36Global explainability lets the model owner determine to what extent each feature contributes to how the model makes its…
  36. Q37In the following waterfall plot , identify the base value (explainer expected value):
  37. Q38tree_path_dependent is a “feature_perturbation” technique is used by default when there is no data provided to shap Tre…
  38. Q39From the following feature powerset , evaluate the ‘w4’ , weight of the marginal coalition.
  39. Q40In the context of the Interaction Index, what is the significance of negative values?