This is a continuation of the banking case study for the creation of application risk scorecards we have discussed in some previous articles. You could find the previous parts of the series at the following links (Part 1), (Part 2), (Part 3) and (Part 4). In this article, we will discuss the Population Stability Index (PSI),
This is a continuation of the banking case study for the creation of application risk scorecards that we have discussed in some previous articles. You can find the other parts of the series at the following links (Part 1), (Part 2), (Part 3), (Part 4), and (Part 6). Reject Inference is a topic that separates credit
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. The following are the
The Beautiful Formula Mathematicians often conduct competitions for the most beautiful formulae of all. The first position, almost every time, goes to the formula discovered by Leonhard Euler. Displayed below is the formula. This formula is phenomenal because it is a combination of the five most important constants in mathematics i.e. 0 : Additive Identity 1 :
Sherlock Holmes & Data Visualization As a kid, a friend of mine used to own a Sherlock Holmes toy kit – the source of envy for all the other friends. The kit had a Sherlock Holmes cap, a pipe, a watch and a magnifying glass. The magnifying glass was the most coveted item in the
A Scientist & An Artist A few weeks ago while wandering around in Florence, the birthplace of the Renaissance, I could not escape the thought of Leonardo da Vinci : the greatest polymath of all times. Leonardo’s illustrious resume contains titles such as painter, inventor, physicist, astronomer, engineer, biologist, anatomist, geologist, and architect – no