This guest article was written by author and consultant Tristan Yates (see his bio below). It emphasizes R’s data object manipulation and scoring capabilities via a detailed financial analysis example.
Scoring and ranking systems are extremely valuable management tools. They can be used to predict the future, make decisions, and improve behavior – sometimes all of the above. Think about how the simple grade point average is used to motivate students and make admissions decisions.
R is a great tool for building scoring and ranking systems. It’s a programming language designed for analytical applications with statistical capabilities. The capability to store and manipulate data in list and table form is built right into the core language.