# Information Statistic

From Open Risk Manual

## Definition

**Information Statistic** (also *Information Value*) is a metric of the strength of a characteristic to separate a binary classification problem (such as good/bad classification in Credit Scoring).

## Formula

where

- is the value of the i-th class
- is the probability (fraction) of
*bads*for value class i - is the probability (fraction) of
*goods*for value class i