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Business judgment

Interview question

  • midlevel
  • 8 minsuggested time
  • 3Data scientist, ML engineer, Data analyst

A manufacturing plant uses a model that outputs the probability a part is defective. Inspecting a part costs 20; shipping a defective part costs 500 (warranty and rework). Both figures are hypothetical. Above what probability should a part be inspected, and what does that assume?

Tests: Deriving a decision threshold from a cost matrix, the need for calibrated probabilities, and practical constraints such as capacity.

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