Difference between revisions of "Divergence Statistic"
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== Formula == | == Formula == | ||
:<math> | :<math> | ||
| − | D^2 = \frac{\pi_G - \ | + | D^2 = \frac{\pi_G - \pi_B)^2}{(\sigma^2_G + \sigma^2_B)/2} |
</math> | </math> | ||
Revision as of 17:28, 17 February 2022
Definition
The Divergence Statistic is a measure of the distance between two distributions. It is typically used in assessing the ability of a Credit Scorecarc to distinguish between the good and bad populations
