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Assume that two individuals offer to sell you their predictive models M1 and M2. The confusion matrices produced by each model are as follows. Predicted

Assume that two individuals offer to sell you their predictive models M1 and M2. The confusion matrices produced by each model are as follows.

  

Predicted True

Predicted False


Actually True

5

95


Actually False

10

90


 Performance of M1 

 

Predicted True

Predicted False


Actually True

85

15


Actually False

95

5


Performance of M2

What is the accuracy of each model?

Assuming that precision is of paramount importance in your application, which of the two models would you buy? Why?

Assuming that the cost of labeling as True something that is actually False far exceeds the cost of labeling as False something that is actually True, which of the two models would you buy? Why?

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