- A
Precision
Precision measures the proportion of predicted fraud that is actually fraud, important to avoid false positives.
- B
Recall
Recall measures the proportion of actual fraud that is detected, critical for catching fraud.
- C
F1 score
Why wrong: F1 is useful but the question asks for two; precision and recall are more direct.
- D
Area under the ROC curve (AUC-ROC)
Why wrong: AUC-ROC is less informative for imbalanced datasets; precision-recall is preferred.
- E
Accuracy
Why wrong: Accuracy is high even if the model predicts all non-fraud, so it's misleading.
AI0-001 AI Models and Data Engineering Practice Question
This AI0-001 practice question tests your understanding of ai models and data engineering. Compare every option against the stated constraints before choosing — the best answer satisfies all requirements, not just the most obvious one. After answering, compare your reasoning against the explanation and wrong-answer breakdown below. Once you have made your selection, read the full explanation to reinforce the concept and understand why each distractor is designed to mislead on exam day.
A data scientist is evaluating a binary classification model for fraud detection. The dataset is highly imbalanced (99% non-fraud, 1% fraud). Which TWO metrics are most appropriate for assessing model performance? (Choose two.)
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
Precision
Precision is appropriate because it measures the proportion of predicted fraud cases that are actually fraudulent, which is critical when false positives (flagging legitimate transactions as fraud) are costly. In a highly imbalanced dataset like this (99% non-fraud), precision directly evaluates the model's ability to avoid overwhelming fraud analysts with false alarms.
Key principle: Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
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 this is correct
Precision measures the proportion of predicted fraud that is actually fraud, important to avoid false positives.
Related concept
Read the scenario before looking for a memorised answer.
- ✓
Recall
Why this is correct
Recall measures the proportion of actual fraud that is detected, critical for catching fraud.
Related concept
Read the scenario before looking for a memorised answer.
- ✗
F1 score
Why it's wrong here
F1 is useful but the question asks for two; precision and recall are more direct.
- ✗
Area under the ROC curve (AUC-ROC)
Why it's wrong here
AUC-ROC is less informative for imbalanced datasets; precision-recall is preferred.
- ✗
Accuracy
Why it's wrong here
Accuracy is high even if the model predicts all non-fraud, so it's misleading.
Common exam traps
Common exam trap: answer the scenario, not the keyword
CompTIA often tests the misconception that AUC-ROC is always the best metric for imbalanced datasets, but the trap here is that AUC-ROC can be misleadingly high even when the model performs poorly on the minority class, whereas precision and recall directly address the class imbalance.
Detailed technical explanation
How to think about this question
Precision and recall are derived from the confusion matrix: precision = TP/(TP+FP) and recall = TP/(TP+FN). In fraud detection, recall ensures most fraudulent transactions are caught (minimizing false negatives), while precision ensures flagged cases are likely real fraud (minimizing false positives). The F1 score is the harmonic mean of precision and recall, but in high-stakes imbalanced scenarios, examining both metrics separately allows tuning the decision threshold to business costs, such as using a precision-recall curve instead of AUC-ROC.
KKey Concepts to Remember
- Read the scenario before looking for a memorised answer.
- Find the constraint that changes the correct option.
- Eliminate answers that are true in general but not in this case.
TExam Day Tips
- Watch for words such as best, first, most likely and least administrative effort.
- Review why wrong options are wrong, not only why the correct option is correct.
Key takeaway
Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Real-world example
How this comes up in practice
A practitioner preparing for the AI0-001 exam encounters this exact type of scenario on the job. The correct answer here is not the most general option — it is the best answer for the specific constraint described. Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option. Real exam questions reward reading the full scenario before eliminating options, because the constraint defines which answer fits.
What to study next
Got this wrong? Here's your next step.
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
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FAQ
Questions learners often ask
What does this AI0-001 question test?
AI Models and Data Engineering — This question tests AI Models and Data Engineering — Read the scenario before looking for a memorised answer..
What is the correct answer to this question?
The correct answer is: Precision — Precision is appropriate because it measures the proportion of predicted fraud cases that are actually fraudulent, which is critical when false positives (flagging legitimate transactions as fraud) are costly. In a highly imbalanced dataset like this (99% non-fraud), precision directly evaluates the model's ability to avoid overwhelming fraud analysts with false alarms.
What should I do if I get this AI0-001 question wrong?
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
What is the key concept behind this question?
Read the scenario before looking for a memorised answer.
About these practice questions
Courseiva creates original exam-style practice questions with explanations and wrong-answer analysis. It does not publish real exam questions, exam dumps, or protected exam content. Learn why practice questions differ from exam dumps →
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Last reviewed: Jun 30, 2026
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