Question abcd

Page 1: Suppose that we are looking at predicting whether credit card transactions are valid or fraudulent. Based upon past history we developed a classication model and applied it to 10,000 known transactions with the following result. Approved 9800 Total 9900 ' Suppose that we have the following consequences to each combination. A valid transaction that is approved generates an average prot of $10 in fee and interest. -A fraudulent transaction that is approved results in an average loss of $300. -A fraudulent transaction that is rejected results in $0 prot/loss. -A valid transaction that is rejected results in a loss of goodwill of $20. Answer the following questions in order: a) (2pts)What is the Accuracy of the model? b) (2pts)What is the Sensitivity of the model? c) (2pts)What is the Specicity of the model? d) (4otlehat is the expected prot per transaction if this model is used