MLS-C01 Modeling Practice Question
A data scientist is building a binary classifier for loan default prediction. The cost of a false negative (missing a default) is 10 times higher than the cost of a false positive. Which evaluation metric is MOST appropriate?
⚠ Common exam trap
It's easy for candidates to default to AUC-ROC as a 'balanced' metric without realizing it does not incorporate asymmetric error costs, leading them to overlook the F-beta score which is explicitly designed for such scenarios.
Answer choices
Why each option matters
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
F-beta score with beta=2
The F-beta score with beta=2 is the most appropriate metric because it weights recall (sensitivity) higher than precision, which is critical when false negatives are 10 times more costly than false positives. Beta=2 means recall is considered 2^2 = 4 times more important than precision, directly aligning with the asymmetric cost structure. This allows the model to be tuned to minimize missed defaults, even at the expense of more false alarms.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Precision
Why it's wrong here
Precision emphasizes false positives, not false negatives.
- ✓
F-beta score with beta=2
Why this is correct
F-beta with beta>1 gives more weight to recall, minimizing costly false negatives.
- ✗
Accuracy
Why it's wrong here
Accuracy does not account for cost differences.
- ✗
Area under the ROC curve
Why it's wrong here
ROC AUC measures overall separability, not cost-sensitive performance.
Quick reference
Asymmetric Encryption Algorithm Comparison
| Algorithm | Key Exchange | Signatures | Equivalent Security Key | Notes |
|---|---|---|---|---|
| RSA-3072 | Yes | Yes | 128-bit | Widely deployed; slow for bulk data |
| ECDSA P-256 | No | Yes | 128-bit | Fast signatures; standard TLS certs |
| ECDH / ECDHE | Yes | No | 128-bit | Perfect forward secrecy in TLS 1.3 |
| DH / DHE | Yes | No | 128-bit (3072-bit key) | Replaced by ECDHE in modern TLS |
| Ed25519 | No | Yes | ~128-bit | SSH keys, modern PKI |
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JA
Written by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
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