What is the Confusion Matrix in Machine Learning? How to evaluate ML model?

Evaluate the effectiveness of machine learning predictions with the help of a confusion matrix.

Confusion (drawing by author)

This article is part of a series where we walk step by step through solving fintech problems with different Machine Learning techniques using the “All lending club loan” dataset. Here you can find the complete end-to-end data science project for beginners to learn data science.

Introduction to Data Science with python: A complete guide to learn data science and machine…

If you are preparing for an interview, this article would help you to answer the following questions:

1. What is a confusion matrix? What is a confusion matrix with an example?
2. Why do we need a confusion matrix?
3. What are false positives and false negatives?
4. What are true positive and true negative?
5. What is the difference between Type 1 and Type 2 errors?

What is Confusion Matrix?