expMisclassCost: Calculate expected misclassification cost

In CustomerScoringMetrics: Evaluation Metrics for Customer Scoring Models Depending on Binary Classifiers

Description

Calculates the expected misclassification cost value for a set of predictions.

Usage

expMisclassCost(predTest, depTest, costType = c("costRatio", "costMatrix"),
  costs = NULL, cutoff = 0.5, dyn.cutoff = FALSE, predVal = NULL,
  depVal = NULL)

Arguments

predTest	Vector with predictions (real-valued or discrete)
depTest	Vector with real class labels
costType	An argument that specifies how the cost information is provided. This should be either "costRatio" or "costMatrix". In the former case, a single value is provided which reflects the cost ratio (the ratio of the cost associated with a false negative to the cost associated with a false positive). In the latter case, a full (4x4) misclassification cost matrix should be provided in the form rbind(c(0,3),c(15,0)) where in this example 3 is the cost for a false positive, and 15 the cost for a false negative case.
costs	see costType
cutoff	Threshold for converting real-valued predictions into class predictions. Default 0.5.
dyn.cutoff	Logical indicator to enable dynamic threshold determination using validation sample predictions. In this case, the function determines, using validation data, the indidicence (occurrence percentage of the customer behavior or characterstic of interest) and chooses a cutoff value so that the number of predicted positives is equal to the number of true positives. If TRUE, then the value for the cutoff parameter is ignored.
predVal	Vector with predictions (real-valued or discrete). Only used if dyn.cutoff is TRUE.
depVal	Optional vector with true class labels for validation data. Only used if dyn.cutoff is TRUE.

Value

A list with

EMC	expected misclassification cost value
cutoff	the threshold value used to convert real-valued predictions to class predictions

Author(s)

Koen W. De Bock, [e-mail]

See Also

dynConfMatrix,misclassCost

Examples

## Load response modeling data set
data("response")
## Apply expMisclassCost function to obtain the misclassification cost for the
## predictions for test sample. Assume a cost ratio of 5.
emc<-expMisclassCost(response$test[,2],response$test[,1],costType="costRatio", costs=5)
print(emc$EMC)

CustomerScoringMetrics documentation built on May 2, 2019, 5:17 a.m.