More General Weighted Binning

April 27, 2019
By

(This article was first published on S+/R – Yet Another Blog in Statistical Computing, and kindly contributed to R-bloggers)

You might be wondering what motivates me spending countless weekend hours on the MOB package. The answer is plain and simple. It is users that are driving the development work.

After I published the wts_bin() function last week showing the impact of two-value weights on the monotonic binning outcome (https://statcompute.wordpress.com/2019/04/21/binning-with-weights), a question was asked if I can write a more general weighted binning function with weights being any positive value. The function wqtl_bin() is my answer (https://github.com/statcompute/MonotonicBinning/blob/master/code/wqtl_bin.R).

Below is an example demonstrating how to use the wqtl_bin() function. First of all, let’s apply the function to the case with two-value weights that was illustrated last week. As expected, statistics from both approaches are identical. In the second use case, let’s assume that weights can be any value under the Uniform distribution between 0 and 10. With positive random weights, all statistics have changed.

It is worth mentioning that, while binning rules can be the same with or without weights in some cases, it is not necessarily true in all situations, depending on the distribution of weights across the data sample. As shown in binning outcomes for “ltv” below, there are 7 bins without weights but only 5 with weights.

To leave a comment for the author, please follow the link and comment on their blog: S+/R – Yet Another Blog in Statistical Computing.

R-bloggers.com offers daily e-mail updates about R news and tutorials on topics such as: Data science, Big Data, R jobs, visualization (ggplot2, Boxplots, maps, animation), programming (RStudio, Sweave, LaTeX, SQL, Eclipse, git, hadoop, Web Scraping) statistics (regression, PCA, time series, trading) and more...



If you got this far, why not subscribe for updates from the site? Choose your flavor: e-mail, twitter, RSS, or facebook...

Comments are closed.

Search R-bloggers

Sponsors

Never miss an update!
Subscribe to R-bloggers to receive
e-mails with the latest R posts.
(You will not see this message again.)

Click here to close (This popup will not appear again)