Decision Tree

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Definition

Credit Scorecards based on Decision Trees are a type of credit scoring model in widespread use to support Credit Decisioning in various Consumer Finance and SME Lending businesses.

This entry serves as the Abstract Risk Model specification of a Decision Tree Scorecard

Model Context

Model Classification

Model Description

Recursive Partitioning Approach

Response Variable

Explanatory Variables

Model Parameters

Model Estimation

Stylized Model Assumptions