Purchase Solution

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

Not what you're looking for?

Ask Custom Question

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.

Purchase this Solution
Solution Summary

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

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 ...

Purchase this Solution
Free BrainMass Quizzes
Pricing Strategies

Discussion about various pricing techniques of profit-seeking firms.

Elementary Microeconomics

This quiz reviews the basic concept of supply and demand analysis.

Economics, Basic Concepts, Demand-Supply-Equilibrium

The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.

Basics of Economics

Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.

Economic Issues and Concepts

This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.

View More Free Quizzes
Related BrainMass Solutions

  • Valuation allowance for a tax loss

    A valuation allowance is needed when, based on the weight of the available evidence, it is more likely than not (a likelihood of more than 50 percent) that some portion or all of a deferred tax asset will not be realized.

  • Does Walking Cause Weight Loss?

    Yes, there is ample scientific and anecdotal evidence in favour of the fact that more vigorous exercise can cause weight loss. Therefore, the negative correlation that was established is quite valid.

  • Null Hypothesis of M&M colors with ANOVA

    246679 Null Hypothesis of M&M colors with ANOVA The weights (in grams) of four different colors of M&M candies are given below, along with the mean weight and variance of each color, and the variance of the sample means.

  • Regression problems

    There is sufficient evidence to support the claim the proportion of male golfers is less than 0.6. B. There is not sufficient evidence to support the claim that the proportion of male golfers is less than 0.6.

  • Negative Feedback and Weight Loss

    151482 Negative Feedback and Weight Loss How might negative feedback loop explain why people who lose large amounts of weight chain that weight back? Explain the weight cycle in perms of the negative feedback loop.

  • Determine is males who quit exercising gain weight

    Is there sufficient evidence at alpha = 0.05 that the males who quit exercising gain weight?

  • Significant correlation between women's age and women's weight

    R Squared: Here value of R Square is 0.316973, which means that the 31.7% of the variation in the dependent variable is explained by the independent variable.

  • Cumulative weight loss: propranolol treatment

    Do we have sufficient evidence to conclude that the mean cumulative weight loss is different for the two groups?

  • Conduct a Mann Whitney U test using real example

    the number of positive or negative signs= ________ Based on comparing the smaller of the number of positive or negative signs to the Critical value which of the following is (are) true?

View More Related Solutions