Main Concept

Accuracy measures the percentage of total predictions that were correct out of all predictions made.

Formula (conceptual)

Accuracy = (Correct predictions) / (Total predictions)

When to Use

Balanced datasets where both classes appear with similar frequency.

Weakness

On imbalanced datasets, accuracy is misleading. A model that always predicts the majority class can achieve very high accuracy while being completely useless at detecting the minority class.

Exam Example

A dataset has 990 legitimate transactions and 10 fraudulent ones. A model that always predicts “not fraud” achieves 99% accuracy but detects zero fraud cases — making accuracy a poor metric for this scenario.

Exam Domain

  • Domain 1, Task Statement 1.3: model performance metrics.

References