Press "Enter" to skip to content

Decile Analysis and Logistic Regression

Ridhima Kumar (re-)introduces us to decile analysis:

Decile analysis was once a popularly used technique, however the convention of teaching and bucketing machine learning problems into either ‘classification’ or ‘Regression’ types, lead people to forget Decile analysis type analyses. I am pretty sure, most freshly minted data scientists would not have even heard of Decile analysis. So, coming back to what is Decile Analysis.

Decile Analysis is used to categorize dataset from highest to lowest values or vice versa. (Based on predicted probabilities)

As obvious from the name, the analysis involves dividing the dataset into ten equal groups. Each group should have the same no. of observations/customers.

It ranks customers in the order from most likely to respond to least likely to respond.

Read on to learn the steps and how this ties with the fact that logistic regression is regression.