How is a Decision Made For a Classification Result?

A predictive model will predict a probability for a targeted value, but the decision as to whether or not the value belongs to one category or another (0 or 1), is based on setting a threshold, so that anything above it is Yes, below is No. Smart Predict sets this threshold automatically for you.

The automatically determined threshold is the point where you have the same % of positive observations for the applied data source population as you do for the training data source population.

  • Above the threshold, observation is flagged as positive.
  • Below the threshold, observation is flagged as negative.