Concept map: Thresholds from cost matrices
Prerequisites (two levels) and direct dependents of Thresholds from cost matrices. Show everything
- 4prerequisites shown
- 1direct dependents
- 3lessons use it
Insights 21
- Try the untouched data plus a cost-based threshold before class weights or resampling
- Derive the decision threshold from the cost matrix instead of using 0.5
- Tune the threshold on cross-validated or fresh validation predictions, never on training predictions
- When reviewers can handle only K cases, rank and evaluate precision at K instead of choosing a probability cut-off
- Derive the false alarm rate an anomaly detector must reach from the base rate and the precision you need
- Set the contamination parameter from review capacity and a labelled sample, not as a guess of the anomaly rate
- Compute ranking metrics within each group when the decision is to rank inside that group
- Let the stake of each case set its own action threshold when costs scale with value
Projects 16
- Booking-flow A/B test: should the one-page passenger form ship?
- Readmissions by admitting specialty: case-mix-adjusted comparison without chasing noise
- Passenger no-show probabilities for overbooking and reconfirmation decisions
- Card-fraud alerts under a fixed review budget: ranking on day 1, tested on day 2
- Probability of default for a card portfolio: calibrated, monotone, explainable and audited
- Churn risk is not persuadability: targeting a retention budget and designing the test that measures it
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