Twenty Alerts Per Fraud

A fraud model scores 1,000,000 transactions, of which 1,000 are fraudulent. At the chosen threshold it flags 10,000 transactions and 500 of those are genuinely fraud. Which reading is right?

A

Precision is 0.05, but ROC-AUC remains the better headline metric because it is invariant to the positive-class rate and therefore comparable across datasets.

B

Recall is 0.5 and precision is 0.05, so an analyst opens 20 alerts per fraud found. The false positive rate is 9,500/999,000≈0.00959{,}500 / 999{,}000 \approx 0.0095, which looks excellent only because the negative class has 999,000 members to divide by.

C

Precision is 0.5 and the false positive rate is 0.0095, so roughly half the alert queue is real fraud.

D

Precision is 0.05 and the false positive rate is 0.95, so ROC-AUC would look just as bad as PR-AUC here.