tag:blogger.com,1999:blog-7958828565254404797.post366234897168435829..comments2024-03-18T15:20:29.180-07:00Comments on ListenData: Weight of Evidence (WOE) and Information Value (IV) ExplainedDeepanshu Bhallahttp://www.blogger.com/profile/09802839558125192674noreply@blogger.comBlogger117125tag:blogger.com,1999:blog-7958828565254404797.post-23775660779974174642023-04-14T22:21:06.501-07:002023-04-14T22:21:06.501-07:00Thanks for the article Deepanshu. very insightful
...Thanks for the article Deepanshu. very insightful<br />But what if we get IV value > 1 for a continuous variable and bins we created are less then 10. <br />Should we user this feature in logistic regression.unknown-kirahttps://www.blogger.com/profile/17280150784430030384noreply@blogger.comtag:blogger.com,1999:blog-7958828565254404797.post-25412926966570134632022-09-14T08:34:27.642-07:002022-09-14T08:34:27.642-07:00Thanks! https://www.listendata.com/2015/03/weight-...Thanks! https://www.listendata.com/2015/03/weight-of-evidence-woe-and-information.html?sc=1663169654969#c966867219846697236<br />JeffThorsen777https://www.blogger.com/profile/01444214970070994178noreply@blogger.comtag:blogger.com,1999:blog-7958828565254404797.post-56422098618979698792022-06-15T02:42:05.701-07:002022-06-15T02:42:05.701-07:00In credit risk domain, bad customers are "eve...In credit risk domain, bad customers are "events" because we are interested in the probability of default. Hope it helps!Deepanshu Bhallahttps://www.blogger.com/profile/09802839558125192674noreply@blogger.comtag:blogger.com,1999:blog-7958828565254404797.post-42973491126133203852022-06-06T18:44:34.736-07:002022-06-06T18:44:34.736-07:00Thank you for the article. I am confused by what ...Thank you for the article. I am confused by what you wrote about the WoE and the actual formula. You wrote, "Positive WOE means Distribution of Goods > Distribution of Bads<br />Negative WOE means Distribution of Goods < Distribution of Bads<br />Hint : Log of a number > 1 means positive value. If less than 1, it means negative value." <br />and your formula - when you first introduced it at the top of the article - is congruent with this: <br />WOE = ln(Dist of Goods / Dist of Bads)<br />However, later in the article you wrote the formula as: <br />WoE = ln(% of non-events / % of events), which is the opposite of your first version of the formula. <br />Then the Weight of Evidence and Information Value Calculation Table contradicts what you wrote above about a positive of negative WoE. For example, in the range 0-50 the % of Events (5.9) is greater than the % of Non-Events (5.4), yet the WoE is negative. Likewise, in the range 51-100 the % of Events (10.1) is less than the % of Non-events (12.3), yet the WoE is positive. Which formula is correct, and would you please help me clear up the confusion? Thanks.Jennyhttps://www.blogger.com/profile/17160481748531024803noreply@blogger.comtag:blogger.com,1999:blog-7958828565254404797.post-17225119624222640352022-05-17T02:52:05.264-07:002022-05-17T02:52:05.264-07:00Fixed it. Thanks!Fixed it. Thanks!Deepanshu Bhallahttps://www.blogger.com/profile/09802839558125192674noreply@blogger.comtag:blogger.com,1999:blog-7958828565254404797.post-54559652607108094922021-11-26T10:25:06.647-08:002021-11-26T10:25:06.647-08:00Thanks for the article. For the 5% Rule, should we...Thanks for the article. For the 5% Rule, should we consider the missing bin? <br /><br />i.e:<br />We consider Missing records as separate bins. If that Missing bins has less than 5% of records, then what should be done. <br /><br />Inorder to check the bin_size:<br />I used ((# of records in that bin / Total # of records) < 0.05).any(). Return True if any one of the bin size is less than 5%. Anonymoushttps://www.blogger.com/profile/12133028756477750185noreply@blogger.comtag:blogger.com,1999:blog-7958828565254404797.post-48177989481260878922021-08-11T07:57:56.287-07:002021-08-11T07:57:56.287-07:00This comment has been removed by the author.Ryan Axelhttps://www.blogger.com/profile/16199605639950060839noreply@blogger.comtag:blogger.com,1999:blog-7958828565254404797.post-29763957597994400062021-07-07T20:16:28.575-07:002021-07-07T20:16:28.575-07:00This comment has been removed by a blog administrator.Vanila shakeshttps://www.godissertationhelp.co.uk/noreply@blogger.comtag:blogger.com,1999:blog-7958828565254404797.post-69094335065811618632021-06-14T06:57:53.062-07:002021-06-14T06:57:53.062-07:00Amazing blog.Amazing blog.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-7958828565254404797.post-36914170375099018472021-05-29T01:20:03.034-07:002021-05-29T01:20:03.034-07:00WOE plays a vital role in differentiating between ...WOE plays a vital role in differentiating between good and bad customers. I like the way you explained it here. Thanks for sharing. tosshttps://todaytossprediction.com/noreply@blogger.comtag:blogger.com,1999:blog-7958828565254404797.post-14614351591602320692021-05-13T04:16:28.192-07:002021-05-13T04:16:28.192-07:00Hi Deepanshu, I dont think your python code consid...Hi Deepanshu, I dont think your python code considers missing category in calculating WOE and IV.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-7958828565254404797.post-11388251244813825042021-05-11T13:28:27.776-07:002021-05-11T13:28:27.776-07:00Hello, great explanation on WOE and IV.
I have a ...Hello, great explanation on WOE and IV.<br /><br />I have a remark on Python code for following lines:<br /><br />d['WoE'] = np.log(d['% of Events']/d['% of Non-Events'])<br />d['IV'] = d['WoE'] * (d['% of Events'] - d['% of Non-Events'])<br /><br />Shouldn't be :<br />d['WoE'] = np.log(d['% of Non-Events'] / d['% of Events'])<br />d['IV'] = d['WoE'] * (d['% of Non-Events'] - d['% of Events'])<br /><br />as both formulas consider Non-Events / Events and Non-Events - Events respectively as you described in this article (and from theory).<br /><br />Nevertheless, the result is the same in the end.<br /><br />RalucaRalucanoreply@blogger.comtag:blogger.com,1999:blog-7958828565254404797.post-65325789237803149582021-02-10T07:27:11.052-08:002021-02-10T07:27:11.052-08:00can we use IV for survival analysis model?can we use IV for survival analysis model?syhttps://www.blogger.com/profile/18324640366831098928noreply@blogger.comtag:blogger.com,1999:blog-7958828565254404797.post-53787989109348871492021-02-05T21:00:39.016-08:002021-02-05T21:00:39.016-08:00Very good article. Very good article. Anonymoushttps://www.blogger.com/profile/04335476171478717193noreply@blogger.comtag:blogger.com,1999:blog-7958828565254404797.post-11804133523656845902020-12-15T16:16:08.653-08:002020-12-15T16:16:08.653-08:00Ok well noted. Thank you very much for the quick r...Ok well noted. Thank you very much for the quick response.Dr.https://www.blogger.com/profile/16477883497268373533noreply@blogger.comtag:blogger.com,1999:blog-7958828565254404797.post-8090599938652713592020-12-15T06:18:18.078-08:002020-12-15T06:18:18.078-08:00Yes it works only for binary dependent variable Yes it works only for binary dependent variable Deepanshu Bhallahttps://www.blogger.com/profile/09802839558125192674noreply@blogger.comtag:blogger.com,1999:blog-7958828565254404797.post-12894535970772568712020-12-15T05:07:18.041-08:002020-12-15T05:07:18.041-08:00Hello, please does IV only work for binary depende...Hello, please does IV only work for binary dependent variables? I tried it on multi-class dependent variable but it's not working. Thanks.<br />Dr.https://www.blogger.com/profile/16477883497268373533noreply@blogger.comtag:blogger.com,1999:blog-7958828565254404797.post-15722544512271729042020-10-22T09:14:21.237-07:002020-10-22T09:14:21.237-07:00Great article on WOW and IV. Excellent read!
I wa...Great article on WOW and IV. Excellent read!<br /><br />I was hoping if you could shed some light on arriving at the final IV value of a variable. From what i gather, IV value of a variable is a summation of IVs from all bins of that variable. However, when i leverage Information package in R and iv$Summary to look into IV values, it doesn't output the final IV instead the IV value of the last bin is captured. <br />I am trying to extract IVs for each variable and when looked into the WOE table, i noticed the IV reported by Summary function reflects the IV of one of the bins of the variable and not the summation. Appreciate any help. Thankssanthanhttps://www.blogger.com/profile/17592840708809383112noreply@blogger.comtag:blogger.com,1999:blog-7958828565254404797.post-44734033746623896572020-09-25T21:32:28.708-07:002020-09-25T21:32:28.708-07:00This comment has been removed by a blog administrator.Emily Smithhttps://www.blogger.com/profile/09604594456048270747noreply@blogger.comtag:blogger.com,1999:blog-7958828565254404797.post-28831494296620028662020-09-25T06:32:12.723-07:002020-09-25T06:32:12.723-07:00This comment has been removed by a blog administrator.Selectmytutorhttps://www.blogger.com/profile/00132907292679290236noreply@blogger.comtag:blogger.com,1999:blog-7958828565254404797.post-46030078331166094442020-09-25T06:29:47.085-07:002020-09-25T06:29:47.085-07:00This comment has been removed by a blog administrator.Selectmytutorhttps://www.blogger.com/profile/00132907292679290236noreply@blogger.comtag:blogger.com,1999:blog-7958828565254404797.post-58908904661973672412020-09-25T05:18:46.955-07:002020-09-25T05:18:46.955-07:00This comment has been removed by a blog administrator.Emily Smithhttps://www.blogger.com/profile/09604594456048270747noreply@blogger.comtag:blogger.com,1999:blog-7958828565254404797.post-56992590464679216532020-09-25T05:18:17.133-07:002020-09-25T05:18:17.133-07:00This comment has been removed by a blog administrator.Emily Smithhttps://www.blogger.com/profile/09604594456048270747noreply@blogger.comtag:blogger.com,1999:blog-7958828565254404797.post-17850989355325687202020-09-25T05:17:22.158-07:002020-09-25T05:17:22.158-07:00This comment has been removed by a blog administrator.Emily Smithhttps://www.blogger.com/profile/09604594456048270747noreply@blogger.comtag:blogger.com,1999:blog-7958828565254404797.post-56274090577593836852020-09-22T03:54:26.639-07:002020-09-22T03:54:26.639-07:00This comment has been removed by a blog administrator.Shivamhttps://www.blogger.com/profile/15655633447163951535noreply@blogger.com