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cost-sensitive softmax

A cost-sensitive softmax is a variant of the standard softmax and cross-entropy formulation in machine learning that incorporates non-uniform penalties, weights, or costs associated with different decision outcomes. Unlike the conventional softmax function, which treats all misclassifications symmetrically and optimizes for uniform accuracy, cost-sensitive softmax adjusts the output probabilities or surrogate loss calculations according to explicit cost structures. These costs can represent asymmetric misclassification impacts, class-imbalance penalties, or task-specific costs such as abstaining from a decision or deferring a prediction to an external expert. By integrating these differential penalties directly into the training objective, the model is trained to minimize total expected operational cost rather than simply minimizing standard classification error.

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