Difference between revisions of "Characteristic"
From Open Risk Manual
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== Characteristic versus Attribute == | == Characteristic versus Attribute == | ||
| − | The terms are quite frequently used interchangeably. More careful language would reserve the term ''Attribute | + | The terms are quite frequently used interchangeably. More careful language would reserve the term ''Attribute'' for the range of values of the Characteristic. |
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| + | === Example === | ||
| + | The values: Owner, Renting, Parents are the attributes of the characteristic Residential Status | ||
== Issues and Challenges == | == Issues and Challenges == | ||
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* [[Explanatory Variables]] | * [[Explanatory Variables]] | ||
* [[Categorical Variable]] | * [[Categorical Variable]] | ||
| + | * [[Scorecard]] | ||
[[Category:Credit Scorecard Development]] | [[Category:Credit Scorecard Development]] | ||
Revision as of 22:23, 1 September 2021
Contents
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
Characteristic versus Attribute
The terms are quite frequently used interchangeably. More careful language would reserve the term Attribute for the range of values of the Characteristic.
Example
The values: Owner, Renting, Parents are the attributes of the characteristic Residential Status
Issues and Challenges
- Non-monotonic behavior (Reversal)
