A financial company is developing a fraud detection system that flags potential fraud cases in...

Precision is the metric that measures the proportion of true positives (actual frauds) among all flagged positives (flagged frauds). High precision ensures that most of the flagged cases are truly fraudulent, minimizing the number of false positives employees must review.

C is correct:

"Precision is the ratio of true positives to all predicted positives, and it answers: ‘Of all the cases flagged as fraud, how many were actually fraud?’ High precision means fewer non-fraudulent cases are sent for manual review."

(Reference: AWS ML Concepts – Precision and Recall, AWS Certified AI Practitioner Study Guide)

A (Recall) measures how many actual frauds are caught, but does not minimize false positives.

B (Accuracy) can be misleading in imbalanced datasets (like fraud detection).