Precision measures the proportion of positive predictions that were actually correct. When avoiding false positives is the priority (e.g., fraud accusations, security alerts, loan denials), precision is the critical metric because:
High precision = very few false positives
Low precision = many false positives
AAIA stresses using appropriate performance metrics depending on risk context.
Accuracy (B) can mask imbalances.
Recall (D) relates to false negatives.
F1 (C) balances precision and recall but does not emphasize false positives specifically.
[References:, AAIA Domain 2: Model Performance Metrics and Risk-Based Evaluation, , ]
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