Only 7.5 % of the NorthPeak rows are faults. With a class this rare, accuracy is useless and the default threshold of 0.5 is wrong for the job. A missed fault costs far more than a visit, so an alarm should fire well before the odds reach one in two. This lesson walks the same logistic regression through five thresholds on the test quarter, prices each choice with a cost per error, and presents class_weight="balanced" as a second lever against imbalance.
Preview — the rest of the lesson is for enrolled readers.
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