Steve, Its basically just a scaling of the score. Are you actually trying to create your own scaled score? Or are you trying to calibrate a FICO (or other model company) generated score based on your own observed portfolio bad rate?
The phrase you used is usually stated: 2% bad rate (or 49:1 odds) at 500 and 50 PDO (Points to Double the Odds), so every 50 points the good/bad odds will double. So, assuming a 2% bad rate is rougly 49:1 good/bad odds (2 bad guys vs. 98 good guys), then a score of 550 is 98:1 odds. It's basically a logarithmic transformation. Hope this helps. Jay L. Stevens Whitehurst Associates, Inc. [EMAIL PROTECTED] http://www.whitehurst-associates.com/ "Steve Jones" <[EMAIL PROTECTED]> wrote in message news:[EMAIL PROTECTED]... > Hi everyone, > > I frequently see stuff like a score is aligned > using certain criteria. > For example they write the criteria as follows: > > 2% bad rate at a score of 500, and points > double every 50 points. > > Can someone shed some light or point me to where > I can read about how to align scores? > > Thanks, > > SJ > > > -- > Posted from prodns3.household.com [63.111.163.13] > via Mailgate.ORG Server - http://www.Mailgate.ORG ================================================================= Instructions for joining and leaving this list and remarks about the problem of INAPPROPRIATE MESSAGES are available at http://jse.stat.ncsu.edu/ =================================================================
