Skip to main content

Base Rate

How common an outcome is in a dataset (for example, the fraction of cases that are actually fraud). A high accuracy figure can be meaningless if the base rate is very low, because a model can score well simply by always predicting the common outcome, which is why the base rate is a required companion to any accuracy claim.

Defined in 4 GAGE programs, which carry 8 distinct definitions of it. The wording above is taught in AI Governance: Applied Mastery.

How each discipline defines it

The same term does different work depending on who is using it. These are the definitions as each program teaches them, unedited.

Engineering Judgment and Professional Formation

How often a candidate cause, such as a software update or a schedule change, occurs in general without producing the failure under investigation. A correlation in time with a rare event is stronger evidence than a correlation with something that happens constantly and usually causes no harm; checking the base rate before treating a correlated change as a likely branch guards against overweighting the first coincidence noticed.

AI Governance: Applied Mastery

How common an outcome is in a dataset (for example, the fraction of cases that are actually fraud). A high accuracy figure can be meaningless if the base rate is very low, because a model can score well simply by always predicting the common outcome, which is why the base rate is a required companion to any accuracy claim.

AI Literacy & Professional Conduct

What usually happens in situations of a given type, used as the anchor against which a specific prediction is judged. A prediction that departs sharply from the base rate must justify the departure; ignoring base rates for a vivid specific claim is a classic judgment error.

Business AI Transformation

The historical frequency or cost of an event (a fraud loss, an error, a stockout) used to anchor a risk-reduction claim. Without a base rate, a claimed reduction is a guess; with one, it is a defensible number.

AI Literacy & Professional Conduct

How common an outcome is across the whole population; essential context for interpreting any AI risk score or probability, because a high-accuracy flag for a rare event can still be wrong most of the time it fires.

Where it is taught

The exact lessons this term appears in. The first 7 topics of every program are free with a free account.

Terms it appears with

Not an alphabetical neighbourhood: these are the terms taught in the same lessons, ranked by how often they appear together.