Characteristic

Definition

Characteristic (also Feature in Machine Learning context) is a general term denoting a variable or other concrete determinant that influences the Risk Profile of a system, entity, financial asset etc. It is used predominantly in development of statistical risk models

Example

The values: Owner, Renting, Parents are the attributes of the characteristic Residential Status

Issues and Challenges

• Non-monotonic behavior (Reversal)

See Also

• Explanatory Variables
• Categorical Variable
• Scorecard
• Characteristic versus Attribute