Analytics Lab – R Welcome back to Analytics Lab on YOU CANalytics! In our last article, we learned the procedure to visualize risk across a parameter (age groups) in Excel. In this part we will generate the same visualization in R. This lab exercise is a part of the banking case study we have previously
Analytics Lab Malcolm Gladwell in his book ‘Outliers‘ says that it takes approximately 10,000 hours of training or practice for anybody to master a subject. There is nothing in the world that could beat hands-on practice for learning. Keeping this in mind let me start a new series on YOU CANalytics called ‘Analytics Lab’ where
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
A Case for Wise Models Lehman Brothers, a financial services company, filed for bankruptcy on 15th September 2008 – exactly five years from today. A company founded in 1850 disappeared overnight. The chain of events to follow brought the overall financial system across the world to its knees – hence started the biggest economic crisis
Year-One of Analytics – A Crucial Juncture I am a big fan of the graphic novel – Batman: the Dark Knight Returns – by Frank Miller. I almost lost my faith in Batman after watching the utterly ridiculous television series from the 60s – based on camp aesthetic. Batman was more of a joker in