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Evaluation

Predictive Analytics

Level 2: General knowledge of the subject (6-9 Years)

C:MM:L1

C:FE:L2

C:RM:L2

C:AS:L2

S:BT:L2

S:BA:L1

T:AN:L1

T:IC:L1

T:CO:L2

T:IA:L2

CS-34 - Variable Transformation Based on Monotonic Binning

Wednesday, November 8, 2023
9:30 AM – 10:30 AM PST
Location: Palos Verdes (1st Floor)
The variable transformation based on the monotonic binning is a piecewise constant transformation that has been prevalent in the banking industry to model binary outcomes. The same idea can be leveraged and extended to improve the efficiency of predictive model development in the actuarial models based on Tweedie and Poisson distributional assumptions. In the session, it will be shown how to use this variable transformation in the predictive model development by using Python.

Learning Objectives:

  • Use the mentioned variable transformation in predictive model developments.
  • Improve the modeling efficiency in daily work.
  • Streamline the model development process.
  • Use the mentioned variable transformation in predictive model developments.