Context
You are working on a product team and building (or evaluating) a binary classifier that triggers an action (e.g., show a warning, block content, route to manual review, send a notification, or prioritize leads).
Question
-
Explain
what precision and recall mean
in this business context.
-
For what types of business scenarios would you
prioritize precision over recall
? Give 2–3 concrete examples.
-
For what types of business scenarios would you
prioritize recall over precision
? Give 2–3 concrete examples.
-
Describe how you would
choose an operating threshold
(or decision rule) in practice, including:
-
the cost/benefit tradeoff and asymmetric error costs
-
capacity constraints (e.g., manual review bandwidth)
-
base-rate / class imbalance considerations
-
what metrics/curves you would look at (e.g., PR curve)
-
any guardrail metrics you would monitor after launch