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How to ThinkIn the Age of AI
Principlev1PR-1044

Set thresholds at approximately three standard deviations…

Set thresholds at approximately three standard deviations from measured baseline to balance detection sensitivity against false alarm rate.

Why This Is a Principle

Derives from Signal detection involves independent dimensions… (signal detection tradeoff) and Process variation consists of two fundamentally different… (common vs. special cause variation). The Shewhart principle prescribes specific statistical threshold placement. Actionable and empirically validated.