- CFA Exams
- CFA Level I Exam
- Topic 1. Quantitative Methods
- Learning Module 7. Big Data Projects
- Subject 4. Model Training
CFA Practice Question
An AUC of ______ signifies randam guessing.
B. 0.5
C. 1
A. 0
B. 0.5
C. 1
Correct Answer: B
As the area under an ROC curve (AUC) is a measure of the usefulness of a test in general, where a greater area means a more useful test, the areas under ROC curves are used to compare the usefulness of tests. A model with AUC of 0.5 or less is worthless.
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