-The optimization and evaluation of a pattern recognition system requires different problems like multi-class and imbalanced datasets be addressed. This paper presents the classification of multi-class datasets which present more challenges when compare to binary class datasets in machine learning. Furthermore, it argues that the performance evaluation of a classification model for multi-class imbalanced datasets in terms of simple "accuracy rate" can possibly provide misleading results. Other parameters such as failure avoidance, true identification of positive and negative instances of a class and class discrimination are also very important. We, in this paper, hypothesize that "misclassification of true positive patterns should not necessarily be categorized as false negative while evaluating a classifier for multi-class datasets", a common practice that has been observed in the existing literature. In order to address these hidden challenges for the generalization of a particular classifier, several evaluation metrics are compared for a multi-class dataset with four classes; three of them belong to different neurodegenerative diseases and one to control subjects. Three classifiers, linear discriminant, quadratic discriminant and Parzen are selected to demonstrate the results with examples.