P33Model EvaluationBeginnerInterpret10 min

Read a Confusion Matrix

Translate confusion-matrix cells into business errors for a loan pre-screening model.

#confusion-matrix#classification#metrics

Scenario

A model flags risky applications. Its results are TP 80, FP 20, FN 40, TN 860.

Problem statement

Identify the four outcomes and explain which error needs attention if risky loans are costly.

Your Task

  1. Name true positives, false positives, false negatives, and true negatives.
  2. Calculate or reason about recall.
  3. Connect a false negative to the lending decision.

Related Concepts

RecallFalse negativesClassification decisions

Ready to count this problem?

Mark it complete when you have reasoned through the solution in your own words.