Compute the IV for each group of a given categorical X and binary response Y. The resulting WOE can be usued in place of the categorical X so as to be used as a continuous variable.
Usage
IV(X, Y, valueOfGood = 1)
Arguments
X
The categorical variable stored as factor for which Information Value (IV) is to be computed.
Y
The actual 1/0 flags for the binary response variable. It can take values of either 1 or 0, where 1 represents the 'Good' or 'Events' while 0 represents 'Bad' or 'Non-Events'.
valueOfGood
The value in Y that is used to represent 'Good' or the occurence of the event of interest. Defaults to 1.
Value
The Information Value (IV) for each group in categorical X variable.
Details
For a given actual for a Binary Y variable and a categorical X variable stored as factor, the information values are computed.