How to determine the quality and correctness of classification models? Part 2 – Quantitative quality indicators

In this part of tutorial we will discuss derived quality indicators and show how to select the appropriate indicator using as an example churn analysis.

Basic quantitative quality indicators

In the first part of the tutorial we introduced the basic qualitative model quality indicators. Let us recall them now:

• TP – True Positive – the number of observations correctly assigned to the positive class
  Example: the model’s predictions are correct and resigning customers have been assigned to the class of „disloyal” customers
• TN – True Negative – the number of observations correctly assigned to the negative class
  Example: the model’s predictions are correct and customers who continue using the service have been assigned to the class of „loyal” customers.