In binary classification problems, a threshold value is used to convert predicted probabilities into discrete class labels. The choice of threshold significantly impacts the model’s performance, affecting Evaluation Metrics.

Important Considerations:

  • Class Imbalance: If the classes are imbalanced, the choice of threshold can be significantly affected. Techniques like oversampling, undersampling, or using weighted loss functions can help mitigate the impact of class imbalance.
  • Data Quality: The quality of the training data can also influence the choice of threshold. If the data is noisy or contains outliers, the chosen values may not be optimal.
  • Evaluation Metrics: Choose Evaluation Metrics that are appropriate for the specific problem and the desired trade-off between different types of errors.

Here are common methods for determining the optimal threshold value: