The classical example of tasks with class imbalance is fraud detection. Most credit card transactions are not fraudulent. As of 2018, 6.8¢ for every $100 in cardholder spending is fraudulent.29 Another is churn prediction. The majority of your customers are probably not planning on canceling their subscription. If they are, your business has more to worry about than churn prediction algorithms. Other examples include disease screening (most people, fortunately, don’t have terminal illness) and resume screening (98% of job seekers are eliminated at the initial resume screening30).
