$S_H$

Sales Profits of High Sales Enterprises

$S_L$

Sales Profits of Low Sales Enterprises

C

Camouflage cost

W

Penalties imposed on enterprises after the detection of fraudulent compensation

$\alpha$

Probability of detection of fraud

$p\left(H/V_H\right)$

The Posterior Probability of Enterprises with High Sales Volume Applying for High Subsidies

$p\left(H/V_L\right)$

The Posterior Probability of Enterprises with High Sales in Applying for Low Subsidies

$p\left(L/V_H\right)$

The Posterior Probability of Enterprises with Low Sales in Applying for High Subsidies

$p\left(L/V_L\right)$

The Posterior Probability of Low Sales Enterprises Applying for Low Subsidies

$Z_1$

Social Benefits Lost by Rejection of Subsidies to High-volume Enterprises

$Z_2$

Social Benefits of High Sales Enterprises Given Low Subsidies Loss

$Z_3$

Social Benefits Lost by Rejection of Subsidies to Low-Sale Enterprises

$Z_4$

Social Benefits of Low Sales Enterprises Given High Subsidies