AI0-001 AI Concepts and Foundations Practice Question
An AI model for detecting fraudulent transactions has high precision but low recall. Which business impact is most likely?
⚠ Common exam trap
CompTIA often tests the distinction between precision and recall by presenting a scenario where candidates confuse high precision with high recall, leading them to incorrectly select option D (many legitimate transactions flagged) instead of recognizing that low recall causes undetected fraud.
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
✓
Many fraudulent transactions go undetected
High precision means that when the model flags a transaction as fraudulent, it is very likely correct. However, low recall indicates that the model misses a significant proportion of actual fraudulent transactions. Therefore, the most likely business impact is that many fraudulent transactions go undetected, leading to financial losses.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
The model has no impact on fraud detection
Why it's wrong here
It does detect some fraud, but misses many.
- ✗
The model detects all fraudulent transactions
Why it's wrong here
Low recall means many are missed.
- ✓
Many fraudulent transactions go undetected
Why this is correct
Low recall indicates a high number of false negatives.
- ✗
Many legitimate transactions are flagged as fraud
Why it's wrong here
That would be low precision, not low recall.
About these practice questions
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JA
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.