IV: IV

In InformationValue: Performance Analysis and Companion Functions for Binary Classification Models

Description

Compute the IV for each group of a given categorical X and binary response Y. The resulting WOE can be usued in place of the categorical X so as to be used as a continuous variable.

Usage

IV(X, Y, valueOfGood = 1)

Arguments

X	The categorical variable stored as factor for which Information Value (IV) is to be computed.
Y	The actual 1/0 flags for the binary response variable. It can take values of either 1 or 0, where 1 represents the 'Good' or 'Events' while 0 represents 'Bad' or 'Non-Events'.
valueOfGood	The value in Y that is used to represent 'Good' or the occurence of the event of interest. Defaults to 1.

Details

For a given actual for a Binary Y variable and a categorical X variable stored as factor, the information values are computed.

Value

The Information Value (IV) for each group in categorical X variable.

Author(s)

Selva Prabhakaran [e-mail]

Examples

data('SimData')
IV(X=SimData$X.Cat, Y=SimData$Y.Binary)

Example output

[1] 0.1620342
attr(,"howgood")
[1] "Highly Predictive"

InformationValue documentation built on May 1, 2019, 9:12 p.m.