A data scientist is training a binary classification model on imbalanced data (95% negative, 5% positive). Which metric is most appropriate for evaluating model performance?
AUC-ROC measures the model's ability to distinguish between classes regardless of threshold, suitable for imbalanced data.
Why this answer
AUC-ROC is the most appropriate metric for imbalanced binary classification because it evaluates the model's ability to distinguish between positive and negative classes across all classification thresholds, without being biased by the 95% negative majority. It measures the trade-off between true positive rate and false positive rate, making it robust to class imbalance.
Exam trap
The trap here is that candidates often default to accuracy as the primary metric, not realizing that with severe class imbalance, accuracy can be artificially high and completely mask poor performance on the minority class.
How to eliminate wrong answers
Option A is wrong because R-squared is a regression metric that measures the proportion of variance explained by the model, and it is not applicable to binary classification problems. Option B is wrong because Mean Squared Error (MSE) is a regression loss function that penalizes large errors quadratically and does not provide meaningful evaluation for classification tasks, especially with imbalanced data. Option D is wrong because accuracy would be misleadingly high (95%) by simply predicting the majority class for all instances, failing to capture the model's performance on the rare positive class.