P84Model EvaluationIntermediateCalculate8 min
Calculate Expected Cost Across Two Classification Thresholds
Calculate operational cost at two thresholds and choose the lower-cost policy.
#calculate#thresholds#costs
Scenario
At threshold A there are 90 false positives and 8 false negatives. At threshold B there are 30 false positives and 16 false negatives. A false positive costs $20; a false negative costs $250.
Problem statement
Calculate total expected cost for each threshold and choose the lower-cost option.
Your Task
- Multiply each error count by its cost.
- Sum costs per threshold.
- Explain why accuracy alone is insufficient.
Related Concepts
Expected costFalse positivesFalse negatives
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