AI engineering glossary · Feature engineering data prep
What is weight of evidence?
Weight of evidence (also called WoE): An encoding from credit scoring that replaces a category or bin by the natural log of the ratio of the share of good outcomes to the share of bad outcomes: WoE = ln(% good / % bad). It creates a monotonic, interpretable signal for logistic regression scorecards.
Weight of evidence: an example
If an income band holds 30 percent of repayers and 10 percent of defaulters, its WoE is ln(0.30 / 0.10) = 1.10.
Related terms
More Feature engineering data prep terms
- Window feature
- Winsorization
- Wrapper method
- Yeo-Johnson transform
- ADASYN
- Aggregation feature
- ANOVA F-test
- Automated feature engineering
Where you learn it
Weight of evidence is part of the AI Engineering Program, which teaches it with notes, a hands-on lab and an exam. The first lesson is free.