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d' (also called sensitivity index) is a measure used in signal detection theory to quantify how well a signal can be distinguished from noise.

$d'$ (also called sensitivity index) is a measure used in signal detection theory to quantify how well a signal can be distinguished from noise.

Given that a signal may be present or not, and the receiver may assert that the signal is present or not, there are four possibilities:

                                         Signal:
                                  Present     Not present
            Receiver:          ---------------------------
                              |             |             |
                'Present'     |     Hit     | False alarm |
                              |             |             |
                               ---------------------------
                              |             |             |
                'Not present' |    Miss     |   Correct   |
                              |             |  rejection  |
                               ---------------------------

The number of Hits divided by (Hits + Misses) is the hit rate ($h$), and the number of False alarms divided by (False alarms + Correct rejections) is the false alarm rate ($fa$). These can be decomposed into the sensitivity ($d'$) of the receiver:
$$ d' = \Phi^{-1}(h) - \Phi^{-1}(fa) $$ To completely specify a receiver's behavior, sensitivity is usually paired with bias ($c$):
$$ c = \frac{\Phi^{-1}(h) + \Phi^{-1}(fa)}{2} $$

Although the conceptual background is slightly different, it is interesting to note that sensitivity / $d'$ here is computed the same as the sensitivity that is used to assess classification performance.