Explain unsupervised fraud and evaluation
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Explain unsupervised fraud and evaluation evaluates core ML concepts, assumptions, math intuition, training/evaluation trade-offs, and practical failure modes in a realistic interview setting. A strong answer states assumptions, handles edge cases, explains trade-offs, and shows how to validate the result clearly.
Explain unsupervised approaches for fraud detection and when you would use them versus supervised methods. Compare options such as clustering, density estimation, isolation forests, autoencoders, and graph anomalies. Then discuss how to evaluate without reliable labels: use precision@k, recall at a fixed review budget, PR-AUC vs ROC-AUC under extreme imbalance, rank-based metrics, proxy/delayed labels, and calibration checks. Clarify why raw “accuracy” is misleading here and how you would choose thresholds.
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