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Week 4: Metric Design and Business Outcome Linkage · Lesson 4.3

Metric validation — correlation to outcomes and sensitivity to change

How do we know this metric is meaningful, not just convenient?

Retired course. Due to the fast pace of AI, this course was retired before full release. Exercises, datasets, and videos referenced in this lesson are not available. The slide content and frameworks remain free to study.

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Reader Notes

This is Lesson 4.3: Cost-Aware Evaluation. In the previous lesson, metrics were classified as blocking versus optimization and mapped to measurement archetypes. Now the lesson addresses a problem that hits every team running LLM-based evaluations: the evaluation suite costs more than running the system itself. That is not sustainable. By the end of this lesson, the deliverable is a Cost Allocation Plan that cuts evaluation costs by 90% without losing the ability to make ship decisions. Budget is allocated by segment risk, evaluations are routed through tiered judge cascades, and 100% coverage is preserved for safety-critical failures. This is portfolio-ready work that can be presented to leadership with the message: "Here is how we stay within budget without flying blind on quality."

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