Selection bias in credit scorecard evaluation

David J Hand and Niall M Adams
Additional contact information
David J Hand: Department of Mathematics, Imperial College London, London, UK
Niall M Adams: 1] Department of Mathematics, Imperial College London, London, UK[2] Heilbronn Institute for Mathematical Research, University of Bristol, Bristol, UK

Journal of the Operational Research Society, 2014, vol. 65, issue 3, 408-415

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.

Date: 2014
References: Add references at CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
http://www.palgrave-journals.com/jors/journal/v65/n3/pdf/jors201355a.pdf Link to full text PDF (application/pdf)
http://www.palgrave-journals.com/jors/journal/v65/n3/full/jors201355a.html Link to full text HTML (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pal:jorsoc:v:65:y:2014:i:3:p:408-415

Ordering information: This journal article can be ordered from
http://www.springer. ... search/journal/41274

Access Statistics for this article

Journal of the Operational Research Society is currently edited by Tom Archibald and Jonathan Crook

More articles in Journal of the Operational Research Society from Palgrave Macmillan, The OR Society
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().