An ROC curve plots the false positive rate (x-axis) against the true positive rate (y-axis) for different model thresholds. The graph below shows three different ROC curves labeled 1, 2, and 3.

Required

1. Compare the curves labeled 1, 2, and 3 in the chart above. Which curve represents the model that would be most useful for a management accountant? Explain.
2. Explain what a “straight line” ROC curve actually represents.

Transcribed Image Text:

True Positive Rate 1 0.75 0.5 0.25 0 0 3 نیا 0.25 2 1 0.5 False Positive Rate 0.75 1