Question 591 of 1,020

AI-900 Practice Question: Describe fundamental principles of machine learning on Azure

This AI-900 practice question tests your understanding of describe fundamental principles of machine learning on azure. The scenario asks you to isolate a root cause — eliminate options that address a different problem before choosing. A key principle to apply: recall measures the proportion of actual positive cases correctly identified.. 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 trains a binary classification model to detect fraudulent transactions. The dataset contains only 2% fraudulent transactions. The model achieves 98% overall accuracy, but it fails to detect any fraudulent transactions, classifying all transactions as legitimate. Which metric would most clearly reveal this failure?

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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

Recall

Recall (also known as sensitivity or true positive rate) measures the proportion of actual positive cases (fraudulent transactions) that were correctly identified by the model. In this scenario, the model classifies all transactions as legitimate, so it detects zero fraudulent transactions, yielding a recall of 0%. Despite 98% overall accuracy, the recall metric clearly exposes the model's complete failure to identify any fraud.

Key principle: Recall measures the proportion of actual positive cases correctly identified.

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 would be low or undefined because the model predicts no positive cases, but recall more directly shows the inability to find fraud.

  • Recall

    Why this is correct

    Recall (true positive rate) is 0 when no fraudulent transactions are identified, exposing the model's failure.

    Related concept

    Recall measures the proportion of actual positive cases correctly identified.

  • F1 score

    Why it's wrong here

    F1 score is the harmonic mean of precision and recall; it would be 0 but does not pinpoint the issue as clearly as recall alone.

  • Specificity

    Why it's wrong here

    Specificity measures true negative rate, which would be high (98%) and thus hide the failure to detect fraud.

Common exam traps

Common exam trap: answer the scenario, not the keyword

The trap here is that candidates often assume high overall accuracy (98%) implies good model performance, failing to recognize that accuracy is a poor metric for imbalanced datasets and that recall is the metric that directly exposes the model's inability to detect the minority class.

Trap categories for this question

  • Command / output trap

    Precision would be low or undefined because the model predicts no positive cases, but recall more directly shows the inability to find fraud.

Detailed technical explanation

How to think about this question

Recall is calculated as TP / (TP + FN). In this imbalanced dataset with only 2% fraud, a naive model that always predicts 'legitimate' achieves high accuracy but has a recall of 0 (TP = 0). Under the hood, accuracy is misleading for rare-event detection because it is dominated by the majority class; recall focuses exclusively on the minority class performance. In real-world fraud detection, a recall of 0% means every fraudulent transaction is missed, leading to catastrophic financial losses, which is why recall is the primary metric for such use cases.

KKey Concepts to Remember

  • Recall measures the proportion of actual positive cases correctly identified.
  • It is calculated as True Positives / (True Positives + False Negatives).
  • Low recall indicates the model misses many actual positive instances.
  • Recall is crucial for imbalanced datasets where the positive class is rare.

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

Recall measures the proportion of actual positive cases correctly identified.

Real-world example

How this comes up in practice

A cloud solutions architect for a retail company is evaluating services for a new workload. The correct answer here reflects best practice for the specific scenario described — not a general cloud recommendation. Recall measures the proportion of actual positive cases correctly identified. Cloud exam questions reward reading the constraint carefully: the same technology can be right or wrong depending on the use case.

What to study next

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Review recall measures the proportion of actual positive cases correctly identified., then practise related AI-900 questions on the same topic to reinforce the concept.

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FAQ

Questions learners often ask

What does this AI-900 question test?

Describe fundamental principles of machine learning on Azure — This question tests Describe fundamental principles of machine learning on Azure — Recall measures the proportion of actual positive cases correctly identified..

What is the correct answer to this question?

The correct answer is: Recall — Recall (also known as sensitivity or true positive rate) measures the proportion of actual positive cases (fraudulent transactions) that were correctly identified by the model. In this scenario, the model classifies all transactions as legitimate, so it detects zero fraudulent transactions, yielding a recall of 0%. Despite 98% overall accuracy, the recall metric clearly exposes the model's complete failure to identify any fraud.

What should I do if I get this AI-900 question wrong?

Review recall measures the proportion of actual positive cases correctly identified., then practise related AI-900 questions on the same topic to reinforce the concept.

What is the key concept behind this question?

Recall measures the proportion of actual positive cases correctly identified.

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Last reviewed: Jun 11, 2026

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