WOE_customFac {Rprofet}

Custom Binning Factor Variables

Description

Function that bins a factor variable based on user inputted factor levels, plots the information on the new bins, and returns a list contains a dataframe of the newly binned values and id column and more items.

Usage

WOE_customFac(
  data,
  var,
  id,
  target,
  new_levels,
  color = "#0066CC",
  plot = FALSE
)

Arguments

data

Dataframe containing the target variable and desired factor variables to be binned.

var

A specific factor attribute to be binned.

id

The unique id variable in the dataframe. Must be specified.

target

A binary target variable. Must be specified.

new_levels

A vector the same length as the number of levels for the categorical variable containing the new factor levels. Must be specified.

color

A hexadecimal value representing a specific color.

plot

Logical. The default is FALSE which does not generate the plots.

Value

A list with the following components.

NewBin

Dataframe with the binned variable.

BinWOE

Dataframe with target, binned variable, and WOE values for the bins.

IV

Information value of the newly binned variable.

vars

Dataframe with binned variable, WOE values for the bins, Target Rate for each bin, and observation count for each bin.

Examples

mydata <- ISLR::Default
mydata$ID = seq(1:nrow(mydata)) ## make the ID variable
mydata$default <- ifelse(mydata$default=="Yes", 1, 0) ## target coded with 1, 0
## WOE_customFactor
custom1 <- WOE_customFac(data=mydata, var="student", id ="ID", target="default",
                         new_levels=c("Student : No","Student : Yes"))
head(custom1$NewBin)
head(custom1$BinWOE)
custom1$IV
custom1$vars
## --------------------------
mydata$balance_cat <- cut(mydata$balance, breaks = c(-1,400,800,1200,1600,2000,2400,2800),
                          labels = c("Very-Low","Low","Med-Low","Med",
                          "Med-High","High","Very-High"))
custom2 <- WOE_customFac(data=mydata, var="balance_cat", id ="ID", target="default",
                         new_levels=c(1,1,2,2,2,3,3))
head(custom2$NewBin)
head(custom2$BinWOE)
custom2$IV
custom2$vars