07 — Decision Analysis and Business Metrics

Translating model outputs into business decisions: calibrating decision thresholds, quantifying business value, and aligning statistical metrics with operational goals.

Notes

• Decision Analysis and Business Metrics — expected value framework, cost-benefit analysis, threshold selection, metric alignment, Goodhart’s law

Links

← 06 — Interpretability and Communication → Evaluation and Model Selection

• Problem Framing — success criteria and loss function choice
• Probability and Statistics — expected value, decision theory