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    Negative weight of evidence (WoE) means that ...

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    Is the statement below True or False? Please explain.

    Negative weight of evidence (WoE) means that given characteristic shouldn't be used as a predictor in credit scoring model.

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    https://brainmass.com/economics/risk-analysis/negative-weight-evidence-woe-means-488197

    Solution Preview

    This statement is false.

    A negative weight of evidence wouldn't be excluded based on that particular characteristic that caused the negative WOE, it is factored into the credit scoring model and kept as a predictor. When we have a WOE value that is negative, that means that's its high and if the WOE characteristic is positive, it's a low risk characteristic. We then use ...

    Solution Summary

    Negative weight of evidence (WoE) means that given characteristic shouldn't be used as a predictor in credit scoring model.

    $2.19