Selection bias in credit scorecard evaluation

Selection bias in credit scorecard evaluation

0.00 Avg rating0 Votes
Article ID: iaor2014444
Volume: 65
Issue: 3
Start Page Number: 408
End Page Number: 415
Publication Date: Mar 2014
Journal: Journal of the Operational Research Society
Authors: ,
Keywords: credit scoring, portfolio selection
Abstract:

Selection bias is a perennial problem when constructing and evaluating scorecards. It is familiar in the context of reject inference, but crops up in many other situations as well. In this paper, we examine the impact of how accepting or rejecting customers using one scorecard leads to biased comparisons of performance between that scorecard and others. This has important implications for organisations seeking to improve or replace scorecards.

Reviews

Required fields are marked *. Your email address will not be published.