CFA Practice Question

There are 155 practice questions for this study session.

CFA Practice Question

An AUC of ______ signifies randam guessing.

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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