Consider the figure below in which a lift curve for the transaction data model i

Question

Consider the figure below in which a lift curve for the transaction data model is applied to new data.

The lift at portion = 0.2 is roughly 2.2. This means that, in the top _______% of the data, which have been sorted by predicted probability of fraudulent, there are roughly _______ times more actual fraudulent records than you would expect given the overall proportion fraudulent (if you were to draw 20% of the records at random).

Lift Curve 2.6 2.4 2.2 2.0 1.8 1.6 1.4- 1.2 1.0 0.00 0.10 0.200.300.400.500.60 0.70 0.80 0.90 1.00 Portion Fraudulent -No -Yes FIGURE 5.17 Lift curve for transaction data.

Explanation / Answer

This means that, in the top 20 % of the data, which have been sorted by predicted probability of fraudulent, there are roughly 2.2 times more actual fraudulent records than you would expect given the overall proportion fraudulent (if you were to draw 20% of the records at random).

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