Detection under a rare base rate
Quality alert audit
The decision
A synthetic inspection system reviews 10,000 items across two shifts. Management asks whether an alert is reliable enough to trigger an automatic production stop.
The detector catches 90 of 100 defects, but it also raises 238 false alerts among 9,900 non-defects. Sensitivity is high; alert precision is not.
| Shift | True alerts | Missed defects | False alerts | Correct clears |
|---|---|---|---|---|
| A | 42 | 8 | 90 | 4,860 |
| B | 48 | 2 | 148 | 4,802 |
| Total | 90 | 10 | 238 | 9,662 |
Audit tasks
- Compute sensitivity for each shift.
- Compute the false-positive rate for each shift.
- Explain why a 90% sensitivity does not imply 90% alert precision.
Check the calculation
Shift A sensitivity is 42 / 50 = 84%; Shift B is 48 / 50 = 96%. Their false-positive rates are 90 / 4,950 = 1.82% and 148 / 4,950 = 2.99%. Overall precision is 90 / (90 + 238) = 27.4%. The rare 1% defect base rate supplies many more opportunities for a false alert than for a true alert.