How do you calculate woe?
It’s good to understand the concept of WOE in terms of events and non-events. It is calculated by taking the natural logarithm (log to base e) of division of % of non-events and % of events.
What are the advantages of information?
Communication – with help of information technologies the instant messaging, emails, voice and video calls becomes quicker, cheaper and much efficient. Globalization and cultural gap – by implementing information systems we can bring down the linguistic, geographical and some cultural boundaries.
Which is the best definition of content value?
Content value Content itself is what the user derives value from. Thus, “content” can refer to the information provided through the medium, the way in which the information was presented, as well as the added features included in the medium in which that information was delivered.
Which is the best definition of the word information?
Information… information is data that has been given meaning by way of relational connection. This “meaning” can be useful, but does not have to be. In computer parlance, a relational database makes information from the data stored within it.
How is data related to information, knowledge, and wisdom?
The following diagram represents the transitions from data, to information, to knowledge, and finally to wisdom, and it is understanding that support the transition from each stage to the next. Understanding is not a separate level of its own. Data represents a fact or statement of event without relation to other things.
Which is true about the collection of information?
knowledge is the appropriate collection of information, such that it’s intent is to be useful. Knowledge is a deterministic process. When someone “memorizes” information (as less-aspiring test-bound students often do), then they have amassed knowledge.
What does the total information value ( IV ) mean?
Information Value (IV) is a measure of the predictive capability of a categorical x variable to accurately predict the goods and bads. For each category of x, information value is computed as: The total IV of a variable is the sum of IV’s of its categories. Here is what the values of IV mean according to Siddiqi (2006):
Where does the idea of information value come from?
The roots of information value, I think, are in information theory proposed by Claude Shannon. The reason for my belief is the similarity information value has with a widely used concept of entropy in information theory. Chi Square value, an extensively used measure in statistics, is a good replacement for IV (information value).
How is the information value of a variable calculated?
Information Value (IV) is a measure of the predictive capability of a categorical x variable to accurately predict the goods and bads. For each category of x, information value is computed as: The total IV of a variable is the sum of IV’s of its categories.
When to use information value ( IV ) and weight of evidence?
This is a continuation of our banking case study for scorecards development. In this part, we will discuss information value (IV) and weight of evidence. These concepts are useful for variable selection while developing credit scorecards. We will also learn how to use weight of evidence (WOE) in logistic regression modeling.
