Weight of evidence (WoE) is a measure of how much the evidence supports or undermines a hypothesis. It measures the relative risk of an attribute of binning level. Since it evolved from credit scoring world, it is generally described as a measure of the separation of good and bad customers.
Implement WoE encoding:
Weight of evidence (WoE) is a measure of how much the evidence supports or undermines a hypothesis. It measures the relative risk of an attribute of binning level. Since it evolved from credit scoring world, it is generally described as a measure of the separation of good and bad customers.