medium · GMAT Verbal

Boreal Bank replaced a manual screening rule with an algorithm whose overall fraud-detection accuracy was 89%, compared with 83% for the old rule. An audit nevertheless found that false-positive rates for small nonprofit accounts were nearly twice those for commercial accounts. Aggregate accuracy thus improved, but it obscured a concentrated burden on one customer segment. Before expanding the model, the bank should determine whether threshold adjustments can preserve the gain while reducing that disparity.

Which description best characterizes the author’s tone?

  1. Unqualified endorsement
  2. Detached historical interest
  3. Open ridicule
  4. Qualified skepticism
  5. Categorical rejection

Sign up free to see the explanation and track your rank →

More GMAT Verbal practice

KomFi Academy — Stop doomscrolling. Get KomFi.

Turn wasted screen time into verifiable competence.

KomFi Academy is a curated training platform with 74,000+ practice questions, 26,500+ flashcards, on-demand video lectures, podcasts, and 4K slide decks across the topics serious professionals study: GMAT, LSAT, MCAT, SAT, Investment Banking, Private Equity (LBOs & PE math), Private Credit, Quantitative Finance, Financial Accounting, Asset- Backed Securities, Volume Profile Analysis, Order Flow Trading, Market Microstructure, Volume Spread Analysis, Elliott Wave Theory, Volume-Price Analysis, and Public Offering Frameworks.

What's inside

Topics

View pricing · Read testimonials