Difference between revisions of "Coarse Classification"
From Open Risk Manual
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== See Also == | == See Also == | ||
* [[Binned Variable]] | * [[Binned Variable]] | ||
| + | * [[Stratification]] | ||
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[[Category:Quantitative Tools]] | [[Category:Quantitative Tools]] | ||
[[Category:Credit Scorecard Development]] | [[Category:Credit Scorecard Development]] | ||
Latest revision as of 15:44, 10 June 2021
Definition
Coarse Classification (also Grouped Variable) in the context of Quantitative Risk Management is the transformation of the range of a Random Variable that is continuous or ranging over a large number of values to a more parsimonious range. It may be generated via the the discretization of Numerical Variable into a defined set of bins (intervals) or the grouping of different attributes of a Categorical Variable.
Coarse classification is an initial stage of model development, after Characteristic Selection
