An optimization problem has to be solved by adjusting the threshold and seeking the optimum in order to balance the trade-off between the decrease in revenue and a decrease in cost.

An optimization problem has to be solved by adjusting the threshold and seeking the optimum in order to balance the trade-off between the decrease in revenue and a decrease in cost. If “Settled” is described as good and “Past Due” is understood to be negative, then using the design regarding the confusion matrix plotted in Figure 6, the four areas …