If my dependent variable contains an “indeterminate” category, how is this category best handled in FICO Scorecard Pro if the category is included in my development sample?
Another question from a customer in the banking industry.
Records categorized as having an indeterminate performance measure are typically left out of scorecard development. When working with a binary outcome, they can be assigned a missing value, or given a value of 2, 3 or 4 if their performance is to be later inferred. Any other value for binary performance will cause the record to be ignored throughout classing and scorecard development.
The indeterminates can later be included (for example in scaling) by using the calibration feature in the distribution tab/scaling component.
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