Expected Value framework: turning ML predictions into measurable ROI
mdancho84 · x · 2026-11-16
Part 3 of mdancho84's Data Science for Business series: the Expected Value framework. Multiply decision probabilities by net value to quantify ML ROI. The book figure shows how to normalize a confusion matrix into expected rates, combine with a cost/benefit matrix, and sum to compute expected value for comparing models and picking the best business decision.
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