Gini Index

Lcparga1Lcparga1
in GLM.ModelRefinement

Hello,

Does having a higher Gini Index mean the rating plan is able to differentiate the best and worst risks better than a rating plan that has a smaller Gini index?

Thanks in advance!

Comments

  • adminadmin

    The Gini Index doesn't say if a rating plan will be adequate or profitable. Instead, it quantifies how well the rating plan segments between the best and the worst risks. The higher the Gini index, the better the segmentation.

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