Decision Matrix - Fraud Investigation Model

Target variable: 1 = fraud; 0 = not fraud

		Predicted Class (or Model's Decision)
		0 (not fraud)	1 (fraud)
Actual Class (or Actual outcome)	0	500	100
	1	200	400

Select one correct answer to fill in the blank below.

If the average loss is $100 per undetected fraud transaction, using this model, the bank is likely to lose $ _____________ .

Group of answer choices

40,000

50,000

20,000

10,000