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How to get a free lunch: A simple cost model for machine learning applications

by: P Domingos
(1998)


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This paper proposes a simple cost model for machine learning applications based on the notion of net present value. The model extends and unifies the models used in (Pazzani et al., 1994) and (Masand & Piatetsky-Shapiro, 1996). It attempts to answer the question "Should a given machine learning system now in the prototype stage be fielded?" The model's inputs are the system's confusion matrix, the cash flow matrix for the application, the cost per decision, the one-time cost of deploying the...


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