1. A Vertex AI AutoML Tabular model trained to predict loan default achieves an AUC-ROC of 0.91 on the evaluation set, but the business team reports that it approves too many defaulting customers (high false negative rate). The dataset has a 5% default rate (severe class imbalance). Which THREE actions would most appropriately address this problem? (Select THREE)
- A. Lower the classification threshold used at prediction time to increase sensitivity (recall) for the positive class.✓ Correct
- B. Use the class_weight option or apply oversampling of the minority class before retraining.✓ Correct
- C. Switch the optimization objective in AutoML Tabular from 'maximize-au-roc' to 'minimize-log-loss' to address imbalance.
- D. Evaluate model performance using AUC-PR (precision-recall curve) instead of AUC-ROC, as it is more informative for imbalanced datasets.✓ Correct
- E. Retrain the model with 10x more features to increase overall model complexity.
- F. Add more majority-class examples to the training dataset to fix the imbalance.
Explanation
Options A, B, and D are correct. (A) Lowering the classification threshold reduces false negatives at the cost of more false positives—directly addressing the business concern of missing defaulters; threshold tuning is the most direct lever after training. (B) Class weighting or oversampling the minority class forces the model to pay more attention to defaulters during training, addressing the root cause of the imbalance problem. (D) AUC-PR is specifically recommended for severely imbalanced datasets because it focuses on the minority class performance, unlike AUC-ROC which can appear artificially high even when the model performs poorly on the minority class. Option C is incorrect: switching optimization objectives from AUC-ROC to log-loss does not specifically target imbalance handling; neither objective directly addresses the class imbalance problem the way resampling or threshold tuning does. Option E is incorrect: adding more features increases complexity and risks overfitting; it does not address class imbalance or the false negative problem. Option F is incorrect: adding more majority-class examples worsens the class imbalance ratio, making the problem worse rather than better.