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Lesson 7 of 8

Picking the right metric

In plain words: The metric should match what a mistake costs in real life.
  • Classification: precision when false alarms are costly, recall when misses are costly, F1 score for a balance.
  • Imbalanced classes: avoid plain Accuracy; use ROC-AUC or F1.
  • Numbers: MAE is easy to explain; RMSE punishes big misses.
  • Forecasts: MAPE or MAE with backtesting.
  • Chatbots / RAG: answer correctness and groundedness on a golden set.
Tip Always report your metric next to the baseline's, so people can see the improvement.