Question

Cut-off value for LDF: if cost of false positive is high and we want to be more conservative when predicting positive. Then we should choose a ________ cutoff value.

Answer 1

For an LDF, choosing a higher cutoff value is suitable when wanting to minimize false positives, reflecting a conservative prediction approach. This strategy might increase false negatives.

Step-by-step explanation:

When considering the cut-off value for a Linear Discriminant Function (LDF), if the cost of false positives is high and a more conservative approach is desired in predicting positives, then a higher cutoff value should be chosen. This is because a higher threshold will reduce the likelihood of falsely predicting a positive outcome, thus reflecting a more cautious approach. Consequently, while this may reduce false positives, it might also lead to an increase in false negatives, where true positives are mistakenly classified as negatives.