Discover and read the best of Twitter Threads about #woe

Most recents (1)

WOE & IV
WOE (Weight of Evidence) determines the predictive power of an independent variable in relation to the dependent variable.

WOE = ln (%non events/%events)

The independent variables is replaced by WOE - It is monotonic and continuous

#DataScience #WOE #IV
1/n
Steps-
1 - For Continous Variables Make Bins of the Data
2 - Min 5% Data in each bin and non zero events/non-events in each bin
3 - Missings to be grouped separately
4 - Use the WOE formula
5 - Regroup similar value bins.
WOE is monotonic

2/n
Benefits-
1 - Treats Outliers
2 - Missing Values are binned separately
3 - Dummy Encoding is not required
4 - Strict Linear relation of the WOE Values

3/n
Read 6 tweets

Related hashtags

Did Thread Reader help you today?

Support us! We are indie developers!


This site is made by just two indie developers on a laptop doing marketing, support and development! Read more about the story.

Become a Premium Member ($3.00/month or $30.00/year) and get exclusive features!

Become Premium

Too expensive? Make a small donation by buying us coffee ($5) or help with server cost ($10)

Donate via Paypal Become our Patreon

Thank you for your support!