Imperfect Labels

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Question

A recycling plant is choosing between two binary classifiers, A and B, that predict whether an item is contaminated (1) or clean (0). Its evaluation labels \(L\) come from rushed human inspections, not from the true status \(Y\). An independent audit finds \(P(L=1\mid Y=0)=0.10\) and \(P(L=0\mid Y=1)=0.40\). Assume that, conditional on the true status, inspection errors are independent of either model's prediction.

The following entries are proportions of all evaluated items, not conditional percentages. Each model was evaluated on the same population:

Model A: \(L=0\) Model A: \(L=1\) Model B: \(L=0\) Model B: \(L=1\)
Predict 0 0.61 0.29 0.40 0.10
Predict 1 0.04 0.06 0.25 0.25

Which model has higher true accuracy, after correcting for label noise? Derive the correction rather than estimating it from raw agreement. When does this correction become mathematically impossible, and why does the conditional-independence assumption matter?

Hint 1

For a fixed model prediction \(m\), split the observed event \(\{M=m,L=1\}\) according to the unobserved true class \(Y\). The independence assumption makes the audit's error rates usable in both pieces.

If \(p_m=P(M=m)\) and \(q_m=P(M=m,L=1)\), then \(q_m=\alpha P(M=m,Y=0)+(1-\beta)P(M=m,Y=1)\). Combine that with the row total \(p_m\) and solve the resulting 2-by-2 system.

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