Question

You are building a system to detect fraudulent card transactions. The first feature that you use is whether the transaction has taken place in the country where the card has been registered (country of registry). Data analysis suggests that 95% of fraudulent transactions do not take place in the country of registry, 98% of the genuine transactions take place in the country of registry, and 1% of transactions overall are fraudulent.
i. What is the probability that a transaction is taking place in a country different than the country of registry
ii. If a transaction has not taken place in the country of registry, what is the probability that it is fraudulent?
iii. What is the decision that your classifier makes for a transaction that took place in a country different from the country of registry? What is the probability that the classifier makes an error for such a transaction? Is this the only type of error that the classifier makes? Explain your answer.

Answer 1

Step-by-step explanation:

what is this

..........