Cost-optimal cutoff with a wider spread
A sensor reads . Under "normal" (), with prior . Under "fault" (), with prior . A false alarm costs units; a missed fault costs units. You declare "fault" when .
Find the cost-minimizing cutoff .
A sensor reads . Under "normal" (), with prior . Under "fault" (), with prior . A false alarm costs units; a missed fault costs units. You declare "fault" when .
Find the cost-minimizing cutoff .