---
title: Alternate use for a payoff matrix
description: An interesting way to use the payoff matrix in DataRobot, consider justifying cost vs. identifying profit drivers.
---

# Alternate use for a payoff matrix {: #alternate-use-for-a-payoff-matrix }



<span style="color:red;font-size: 1rem"> `Robot 1`</span>

**How about justify cost savings vs identify profit drivers?**

Hello Team. A client and I were putting together numbers for a [payoff matrix](profit-curve#compare-models-based-on-a-payoff-matrix) and had an alternative way to look at things. For them, the goal is to justify cost savings vs identify profit drivers from a use case.

Example:

1. True Positive (benefit): This is the benefit from an order that is correctly predicted as canceled. The benefit is no/limited inventory costs. For example, if the item costs $100 to store typically, but due to cancellation - no additional cost (we put a 0 here). Benefit can come from additional revenue generated through proactive reach out

2. True Negative (benefit): This is the benefit from an order that is correctly predicted as not canceled. The additional benefit / costs are 0 because a customer simply does not cancel this item and continues with shipment ($1000 profit on avg or -100 inventory cost per order)

3. False Positive (cost): This is the cost associated with classifying an order as canceled when it did not cancel. What costs are incurred - Lost opportunity or business since the order is not fulfilled or delayed (-200)

4. False Negative (cost): This is the cost associated with classifying an order as not canceled, when it will actually cancel. We have to incur a cost here for inventory management -$100
 

Just thought I'd share!


<span style="color:red;font-size: 1rem"> `Robot 2`</span>

Nice!