Description
Divide positive underCost by underCost + overCost for quantile and divide underCost by overCost for odds.
Pinball loss weights underprediction and overprediction differently for a target quantile. Its kink at zero residual requires a subgradient convention, and derivative signs depend on the variable.
Divide positive underCost by underCost + overCost for quantile and divide underCost by overCost for odds.
When to use this tool
Use Asymmetric Error Cost Breakeven Ratio when you need an explicit quantile-loss term or convention.
How to use the tool and how it works
- Enter underCost, overCost. Use the units and conventions below.
- Run the tool. Correct any format, range, or cross-field input error before interpreting the output.
- Read quantile, odds. Use the output convention below.
Divide positive underCost by underCost + overCost for quantile and divide underCost by overCost for odds.1
| Input field | Meaning and units | Accepted input |
|---|---|---|
| underCost | Under Cost | Required. Finite number; strictly above 0. |
| overCost | Over Cost | Required. Finite number; strictly above 0. |
| Output field | Interpretation | Returned shape |
|---|---|---|
| quantile | Quantile level as a fraction, not a percentage. | Required. Finite number. |
| odds | Odds | Required. Finite number. |
{
"input": {
"underCost": 3,
"overCost": 1
},
"output": {
"quantile": 0.75,
"odds": 3
}
}Limitations and assumptions
- Costs must share a basis; the ratio supplies a loss asymmetry and does not estimate an outcome distribution or an optimal forecast value.
- Inputs must satisfy both the field types and the cross-field conditions above. Invalid input causes an error; a successful false flag or documented placeholder is a different result.
- Numeric calculations use binary floating point unless exact decimal-integer arithmetic is explicitly stated. No hidden measurement tolerance or decimal rounding is added; nonfinite or out-of-contract results are rejected. Numeric signed-zero results are exported as zero.
Alternative or Complementary methods
Keep residual definitions consistent and assess quantile calibration and crossing across a complete forecast set.
References
Similar or alternative tools
- Metrics: Pinball Residual Term
For residual defined as actual minus prediction, use quantile × residual when nonnegative and (quantile - 1) × residual otherwise.
- Weighted Pinball Zero Weight Flag
Apply quantile × positive underprediction error or (1 - quantile) × overprediction error, then multiply by nonnegative weight.