Week 11 Notes – Classification, ROC, and Decision Thresholds

Published

November 17, 2025

Key Concepts Learned

  • Logistic regression produces probabilities, not discrete categories.
  • Classification requires choosing a decision threshold to turn probabilities into yes/no predictions.
  • Confusion matrices summarize four types of outcomes: true positives, false positives, true negatives, and false negatives.
  • Performance metrics—accuracy, sensitivity, specificity, precision, recall, F1—capture different aspects of model quality.
  • ROC curves show tradeoffs between sensitivity and specificity across all possible thresholds.
  • AUC measures overall model discrimination independent of a specific threshold.
  • Base rates and class imbalance can distort accuracy and require alternative evaluation metrics.
  • Choosing a threshold is a policy decision, not a statistical one, because different types of errors have different real-world costs.

Coding Techniques

  • Using predict(..., type = "response") to generate predicted probabilities.
  • Manually converting probabilities to classifications using various thresholds.
  • Constructing confusion matrices and computing metrics for each threshold.
  • Using ROC and AUC functions to evaluate model performance across thresholds.
  • Creating tables or plots that compare metrics under different decision rules.

Questions & Challenges

  • How to determine the “best” threshold when costs of errors are not explicitly quantified.
  • Interpreting ROC curves beyond simply preferring higher AUC.
  • Evaluating how different thresholds affect resource allocation and public service delivery.
  • Translating statistical performance into operational decisions.

Connections to Policy

  • Threshold choices determine who gets flagged for inspection, services, enforcement, or support.
  • False positives and false negatives often have asymmetric consequences, requiring careful balancing.
  • AUC helps compare models, but policymakers must define acceptable tradeoffs.
  • Classification systems can influence equity outcomes depending on how errors impact different communities.

Reflection

  • This week emphasized that prediction is only the first step; decisions require judgment.
  • ROC analysis clarified that a single model can support many policy goals depending on the threshold.
  • I will pay more attention to documenting error tradeoffs and aligning threshold selection with policy priorities in future work.