---
title: Dollarized Confusion Matrix
slug: dollarized-confusion-matrix
url: https://templeton.host/lexicon/dollarized-confusion-matrix/
type: defined-term
inDefinedTermSet: https://templeton.host/lexicon
author: Andrew Templeton
---

# Dollarized Confusion Matrix

## Definition

A confusion matrix where counts are replaced with costs. The optimal threshold follows: theta* = C_FP / (C_FP + C_FN). Costs drive thresholds, thresholds drive autonomy levels.

## Why this term exists

Teams commonly default to 0.5 or an intuitive cutoff. The optimal threshold is a calculation, and the inputs are the actual dollar cost of being wrong in each direction.

## See also

- [Dollarized Confusion Matrix Tool](https://templeton.host/tools/dollarized-confusion-matrix)
- [Verification Trap](https://templeton.host/lexicon/verification-trap)
- [Autonomy State Machine](https://templeton.host/lexicon/autonomy-state-machine)

Canonical URL: https://templeton.host/lexicon/dollarized-confusion-matrix/