The formula to calculate the Cutoff Value (CV) is:
\[ CV = \frac{T \cdot p}{1 - r} \]
Where:
A cutoff value, in the context of statistics and data analysis, is a predetermined threshold used to divide data into two or more classifications. It serves as a decision point or boundary in a test or analysis. For instance, in a medical test, a cutoff value may be used to determine whether a patient’s results are normal or abnormal. The selection of a cutoff value can significantly impact the results and conclusions drawn from the analysis.
Let's assume the following values:
Using the formula:
\[ CV = \frac{100 \cdot 0.8}{1 - 0.1} = \frac{80}{0.9} \approx 88.89 \]
The Cutoff Value (CV) is approximately 88.89.
