Calcite | Level 5

## How to find a cut-off value for Estimated Probability that make an equation has the minimum value

Hi SAS community members,

I need to find a cut-off value for Estimated Probability that make EC has the minimum value

EC= q1(x1)c1+q2(x2)c2

where q1=0.01, c1=1 , q2=0.99, c2=20

x1 is the probability of observed Type I error , x2 is the probability of observed the Type II error

q1 is the assuemd probabilty for manipulator = 0.01 (1%), and the assumend probabilty for non-manipulator is q2=0.99 (99%).

The following is the sample data

 Global Company em Estimated Probability Key 1173 1 0.01095 1173 1 0.00952 1286 1 0.00804 3362 1 0.0161 3734 0 0.00812 3839 1 0.0123 3946 1 0.01109 4060 0 0.00972 4060 1 0.01077 4372 1 0.00967 4601 1 0.00978 4601 0 0.00981 4622 1 0.00922 4769 1 0.01033 5047 1 0.01023 5399 1 0.00945 6136 1 0.01154 6136 1 0.00984 6882 1 0.00917 7652 1 0.00949 7652 0 0.00958 7991 1 0.01051 8092 1 0.01075 8972 0 0.01 9538 1 0.01213 10026 1 0.00946

em=1 means the observations is a manipulator, 0 otherwise,

Estimated Probability is the estmated probabilty calculated by a Logit model.

In my sample, there are 100 manipulators and 9,900 non-manipulators.

SAS Employee

## Re: How to find a cut-off value for Estimated Probability that make an equation has the minimum valu

I don't quite understand the statistics terms (manipulator, etc.) in your questions. I guess you can also ask this question in the statistics community while waiting for an answer here:

https://communities.sas.com/t5/SAS-Statistical-Procedures/bd-p/statistical_procedures

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