AI engineering glossary · Feature engineering data prep
What is IV (information value)?
Information value (also called IV): A credit-scoring statistic that summarises how well a feature separates good from bad outcomes, computed by summing (share good - share bad) x WoE across bins. Higher values indicate more predictive power, and it is used to rank and filter variables.
Information value: an example
A feature with information value of 0.02 is usually treated as nearly useless, while one around 0.3 is considered fairly strong.
Related terms
More Feature engineering data prep terms
- Interaction feature
- Interpolation
- IQR method
- Iterative imputation
- K-fold target encoding
- KNN imputation
- Kurtosis
- Label encoding
Where you learn it
Information value is part of the AI Engineering Program, which teaches it with notes, a hands-on lab and an exam. The first lesson is free.