An unbalanced dataset is a collection of data where the classes (or categories) are not represented equally. In other words, one class significantly outnumbers the others. This situation is especially common in machine learning tasks like fraud detection, disease diagnosis, or rare event prediction, where examples of the event of interest (for example, fraudulent transactions or positive medical diagnoses) are much rarer than the negative examples.
When training a machine learning model on an unbalanced dataset, the model can become biased toward the majority class simply because it sees it much more often. For instance, if you have a dataset where 95% of the data points belong to class A and only 5% belong to class B, a model could achieve 95% accuracy by always predicting class A—completely ignoring class B. However, this model would be useless for detecting class B, which is often the class we care most about.
Unbalanced datasets can lead to misleading evaluation metrics. Accuracy becomes less meaningful, so practitioners often use metrics like precision, recall, F1-score, and area under the ROC curve to get a better sense of how well their model handles the minority (underrepresented) class. These metrics focus more on the model’s ability to identify the important or rare cases.
There are several strategies to address unbalanced datasets. One common technique is resampling, which includes oversampling the minority class (repeating or synthetically generating more examples) or undersampling the majority class (removing some examples to balance the classes). Methods like SMOTE (Synthetic Minority Over-sampling Technique) generate new synthetic samples for the minority class. Another approach is to adjust the learning algorithm itself, such as by using class weights that penalize misclassifications of the minority class more heavily. Ensemble methods, like random forests or gradient boosting, can also help, especially when combined with resampling techniques.
Unbalanced datasets are not inherently bad, but if not addressed, they can cause machine learning models to perform poorly on the very cases you may care most about. It’s important to recognize when your data is unbalanced and to choose evaluation metrics and modeling strategies accordingly. Sometimes, having a slightly unbalanced dataset is acceptable if your application is tolerant of errors on the majority class, but most of the time, you’ll want to ensure your model is effective across all classes, especially the minority one.
It’s also worth noting that the terms “unbalanced dataset” and “imbalanced dataset” are often used interchangeably in the machine learning community.