How should you interpret these results?

You work for a magazine publisher and have been tasked with predicting whether customers will cancel their annual subscription. In your exploratory data analysis, you find that 90% of individuals renew their subscription every year, and only 10% of individuals cancel their subscription. After training a NN Classifier, your model predicts those who cancel their subscription with 99% accuracy and predicts those who renew their subscription with 82% accuracy.

How should you interpret these results?
A . This is not a good result because the model should have a higher accuracy for those who renew their subscription than for those who cancel their subscription.
B. This is not a good result because the model is performing worse than predicting that people will always renew their subscription.
C. This is a good result because predicting those who cancel their subscription is more difficult, since there is less data for this group.
D. This is a good result because the accuracy across both groups is greater than 80%.

View Answer

Answer: B

Explanation:

In this case, the model has a high accuracy of 99% for identifying customers who cancel their subscriptions, but a lower accuracy of 82% for identifying customers who renew their subscriptions. However, this does not necessarily mean that the model is performing well, because 90% of the customers renew their subscription, so if the model always predicts that customers will renew, it will be correct 90% of the time. Therefore, the model’s performance is worse than the baseline of always predicting that customers will renew their subscription.

https://en.wikipedia.org/wiki/Imbalanced_data https://machinelearningmastery.com/baseline-performance-machine-learning-algorithms/