SYSTEM AND METHOD FOR COARSE-CLASSING VARIABLES IN A PROPENSITY MODEL

A technique is provided to coarse-class one or more customer characteristics used in a predictive model. A set of functions are used to represent partition points of the customer characteristic into smaller classes. Each of the final classes of the customer characteristic is represented separately in the predictive model. An initial set of functions may be established to provide an initial set of partitions points of the customer characteristic. The set of functions is then processed using a genetic algorithm to evolve the partition points to new values. Processing the set of partitions using the genetic algorithm may continue until a stopping criterion is reached.