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AI0-001 AI Concepts and Techniques Practice Question

A data scientist is building a model to predict whether a loan application will default. The dataset has 10,000 labeled examples with 1,000 defaults. Which metric is MOST appropriate for evaluating this highly imbalanced binary classification?

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

AUC-ROC

AUC-ROC is robust to class imbalance because it measures the trade-off between true positive rate and false positive rate across all thresholds. Accuracy is misleading when classes are imbalanced. Precision and recall focus on one class but are threshold-dependent.

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 only considers the correctness of positive predictions, ignoring false negatives.

  • AUC-ROC

    Why this is correct

    AUC-ROC evaluates model performance across all thresholds and is insensitive to class imbalance.

  • Recall

    Why it's wrong here

    Recall only measures how many actual positives are captured, ignoring false positives.

  • Accuracy

    Why it's wrong here

    Accuracy can be high even if the model predicts 'no default' for all cases, which fails to capture the minority class.

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Written by Johnson Ajibi, MSc IT Security

Senior Network & Security Engineer · founder of Courseiva

This AI0-001 practice question is part of Courseiva's free CompTIA certification practice question bank. Courseiva provides original exam-style practice questions with explanations, topic-based practice, mock exams, readiness tracking, and study analytics to help learners prepare for the AI0-001 exam.