Arduino used as switch?

Osgeld is correct. For a basic analog input -> transistor setup, it'd look like this:

int input = 0; //analog input 0 is connected to the sensor
int output = 2; //digital pin 2 is connected to the transistor base
int threshold = 500; //the level at which the output will be triggered

void setup() 
{
  pinMode(output, OUTPUT); //initializes pin 2 as an output
}

void loop() {
  if (analogRead(input) > threshold) //is the value higher than 500?
    {
      digitalWrite(output, HIGH); //if so, turn on the transistor
    }
  else
    {
      digitalWrite(output, LOW); //if not, turn off the transistor
    }
  delay(50); //just in case
}

DISCLAIMER: I have not tested that code.