In this setting it may be better to use a higher threshold for classifying a

In this setting it may be better to use a higher

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In this setting it may be better to use a higher threshold for classifying a wine as suited to the Japanese market. For instance we may only classify a wine as suited to the Japanese market if the predicted probability is greater than 0.7. This will mean that fewer wines will be classified as Japanese. This way we avoid classifying the wine as suited to Japan when it is truly suited to Australia (for this scenario the cost is high). However this decision would depend on the exact costs of misclassification. For Wine B, the predicted probability that it is either Australian or Japanese is zero therefore the two costs of misclassification described in the question would not have an impact on this decision. 7. Suppose QDA is also being implemented. What assumptions need to be made? It needs to be assumed that the observations (i.e. wines) are independent and that the predictors with the same class are normally distributed. That is, alcohol and magnesium for wines suited to Japan must be normally distributed, alcohol and magnesium for wines suited to Australia must be normally distributed and alcohol and magnesium for wines suited to Europe must be normally distributed. 8. Suppose the assumptions stated in question 7 are correct. Also, suppose in addition to these assumptions, the variance of alcohol and the variance of magnesium are the same.
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