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AI & Machine Learning · Intermediate

Classification Threshold

The probability cutoff above which a classifier predicts the positive class.

Definition

Thresholds default to 0.5 but should be set according to business costs. Lowering the threshold increases recall and false positives; raising it increases precision and false negatives. Adjusting it requires no retraining.

Exam tip

To catch more fraud without retraining, lower the threshold.

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