# Cost Matrix **Domain:** Decision theory and classification **Doc Type:** Developed Concept Node **Maturity:** Developed **Collection:** [[collections/Gamification|Gamification Collection]] ## Definition A **cost matrix** assigns consequences to combinations of true state and decision: true positive, false positive, true negative, and false negative. It makes explicit that classification errors are not equally harmful and that threshold choice is a policy judgment, not only a technical optimization. ## Significance A security system may tolerate many false positives to avoid one missed threat; a rights-protecting system may demand stronger evidence before imposing severe consequences. Publishing criteria without publishing error costs leaves the governing choice partly hidden. ## Sources - NIST, [Confusion matrix terminology](https://www.nist.gov/itl/ai-risk-management-framework) ## Routes [[wiki/Base Rate|Base Rate]] · [[wiki/False Positive|False Positive]] · [[wiki/AIN Eligibility Review Panel|AIN Eligibility Review Panel]] · [[wiki/Integrated Joint Operations Platform|IJOP]]