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Peer-reviewedCC BY 4.0Mathematics

Prior-Shift-Invariant Threshold Transport in Budget-Constrained Supervisory Screening: Workload Identity, Prior–Drift Decomposition, and Distribution-Free Risk Control

  1. 1China-ASEAN Institute of Statistics, Guangxi University of Finance and Economics, Nanning 530003, China
  2. 2Graduate School of Technology and Management, Kyung Hee University, Seoul 02447, Republic of Korea

Abstract

Examination capacity is fixed, so a supervisor screening firms must decide which files to open rather than which firms are deficient. A movement in the class prior rescales the posterior monotonically, leaving the ranking untouched and with it, the area under the receiver operating characteristic curve; that much is classical. This paper takes up the two quantities such a supervisor actually feels, neither of them a functional of the ranking. Hold the cut-off fixed: the detection rate does not move, the flagged share moves by the prevalence change times the Youden index—the adjusted-count identity of the quantification literature, read here as a workload forecast—and an exact algebraic split separates the deployment precision gap into a prior term, which recalibration reaches, and a residual, which it does not. Sorting the usual summaries by prior-invariance and by dependence on the operating region shows that both properties belong to quantities indexed by a fixed cut-off alone; the area under the curve carries only one, and precision and lift at a fixed budget only the other. The same indexing settles the decision problem: under a pure prior movement, carrying a cut-off across the deployment gap weakly dominates carrying a selection rate whichever way the prior moves, with an exact shortfall and a characterised equality case. That dominance is the paper’s one new analytical statement; the remaining apparatus is classical or a specialisation of existing methods, and a dedicated subsection of this paper says which is which, result by result. An exact binomial tolerance bound calibrates the budget—an order-statistic construction borrowed from Neyman–Pearson classification—and its certified level inflates by the distance between the positive-class score laws, a distance to which a prior movement contributes nothing. Two panels supply the evidence, and are the substance of the contribution: 122,335 United States firm-years under enforcement-based misstatement labels, and 172,566 bank-years over which the prior moves by a factor of 45 in both directions. Precision at the five per cent operating budget tracks the base rate there with an elasticity of 0.986, while chance-adjusted discrimination moves at −0.005, and a transported cut-off captures 71.4 and 93.1 per cent of the attainable audit surplus—the share of the value an oracle policy could realise at the same budget—against 2.8 and 33.2 for a standing fixed-share policy. Two negative findings follow: recalibration reaches only the smaller part of the deployment precision gap on the enforcement panel, and distribution-free certificates fall short of their certified coverage once deployed.

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BibTeX
@article{li2026priorshiftinvariant,
  title = {{Prior-Shift-Invariant Threshold Transport in Budget-Constrained Supervisory Screening: Workload Identity, Prior–Drift Decomposition, and Distribution-Free Risk Control}},
  author = {Songbao Li and Dongxu Mo and Chao He},
  journal = {Mathematics},
  year = {2026},
  month = oct,
  doi = {10.3390/math14193571},
  url = {https://www.mdpi.com/2227-7390/14/19/3571},
  note = {CC BY 4.0},
}
RIS
TY  - JOUR
TI  - Prior-Shift-Invariant Threshold Transport in Budget-Constrained Supervisory Screening: Workload Identity, Prior–Drift Decomposition, and Distribution-Free Risk Control
AU  - Songbao Li
AU  - Dongxu Mo
AU  - Chao He
PY  - 2026
DA  - 2026/10/02
JO  - Mathematics
DO  - 10.3390/math14193571
UR  - https://www.mdpi.com/2227-7390/14/19/3571
AB  - Examination capacity is fixed, so a supervisor screening firms must decide which files to open rather than which firms are deficient. A movement in the class prior rescales the posterior monotonically, leaving the ranking untouched and with it, the area under the receiver operating characteristic curve; that much is classical. This paper takes up the two quantities such a supervisor actually feels, neither of them a functional of the ranking. Hold the cut-off fixed: the detection rate does not move, the flagged share moves by the prevalence change times the Youden index—the adjusted-count identity of the quantification literature, read here as a workload forecast—and an exact algebraic split separates the deployment precision gap into a prior term, which recalibration reaches, and a residual, which it does not. Sorting the usual summaries by prior-invariance and by dependence on the operating region shows that both properties belong to quantities indexed by a fixed cut-off alone; the area under the curve carries only one, and precision and lift at a fixed budget only the other. The same indexing settles the decision problem: under a pure prior movement, carrying a cut-off across the deployment gap weakly dominates carrying a selection rate whichever way the prior moves, with an exact shortfall and a characterised equality case. That dominance is the paper’s one new analytical statement; the remaining apparatus is classical or a specialisation of existing methods, and a dedicated subsection of this paper says which is which, result by result. An exact binomial tolerance bound calibrates the budget—an order-statistic construction borrowed from Neyman–Pearson classification—and its certified level inflates by the distance between the positive-class score laws, a distance to which a prior movement contributes nothing. Two panels supply the evidence, and are the substance of the contribution: 122,335 United States firm-years under enforcement-based misstatement labels, and 172,566 bank-years over which the prior moves by a factor of 45 in both directions. Precision at the five per cent operating budget tracks the base rate there with an elasticity of 0.986, while chance-adjusted discrimination moves at −0.005, and a transported cut-off captures 71.4 and 93.1 per cent of the attainable audit surplus—the share of the value an oracle policy could realise at the same budget—against 2.8 and 33.2 for a standing fixed-share policy. Two negative findings follow: recalibration reaches only the smaller part of the deployment precision gap on the enforcement panel, and distribution-free certificates fall short of their certified coverage once deployed.
SN  - 2227-7390
ER  -