Reply To: Unsure of a question in ML exam (changing the cost function)

[Carlo-TutorialsDojo]

Hello goking,

Thanks for sharing your feedback.

This item is a case of recall vs precision. The formula for precision is TP / (TP + FP ) where TP is True Positive and FP is False Positive. The formula for recall is TP / (TP + FN ) where TP is True Positive and FN is False Negative. Since precision considers false positives, it should have more weight in determining the cost function. False negatives in this scenario simply refer to players who were not predicted to buy at least 5 loot boxes but ended up paying for it anyway. There’s no loss in false positives as the company still gains money for false negative predictions. Hence, precision is more important.

Let me know if this makes sense.

Regards,

Carlo @ Tutorials Dojo

• This reply was modified 3 years, 10 months ago by  Carlo-TutorialsDojo.