varbin: varbin

In varbin: Optimal Binning of Continuous and Categorical Variables

Description

Optimal binning of numerical variable

Usage

varbin(df, x, y, p=0.05, custom_vec=NA)

Arguments

df	A data frame
x	String. Name of continuous variable in data frame.
y	String. Name of binary response variable (0,1) in data frame.
p	Percentage of records per bin. Default 5 pct. (0.05). This parameter only accepts values greater than 0.00 (0 pct.) and lower than 0.50 (50 pct.).
custom_vec	Numerical input vector with custom cutpoints. E.g. custom_vec=c(20, 50, 75) for a variable representing age, will result in the cutpoints [<20, <50, <75, >=75]. NA results in the default unrestricted (most optimal) binning.

Value

The command varbin generates a data frame with necessary info and utilities for binning. The user should save the output result so it can be used with e.g. varbin.plot, or varbin.convert.

Examples

# Set seed and generate data
set.seed(1337)
target <- as.numeric(runif(10000, 0, 1)<0.2)
age <- round(rnorm(10000, 40, 15), 0)
age[age<20] <- round(rnorm(sum(age<20), 40, 5), 0)
age[age>95] <- round(rnorm(sum(age>95), 40, 5), 0)
inc <- round(rnorm(10000, 100000, 10000), 0)
educ <- sample(c("MSC", "BSC", "SELF", "PHD", "OTHER"), 10000, replace=TRUE)
df <- data.frame(target=target, age=age, inc=inc, educ=educ)

# Perform unrestricted binning
result <- varbin(df, "age", "target")

# Perform custom binning
result2 <- varbin(df, "age", "target", custom_vec=c(30,40,60,75))

Example output

varbin documentation built on May 1, 2019, 8:22 p.m.