Hi Everyone,
I have build a decision tree for each month identifying customers who go bad. From April to May the gini coefficient jumps from 30% to around 50%. I think it is largely drive by one node in the decision tree which is high risk where the bads in that node go from 16% to around 50% from April to May. Would this line of thinking be correct or is the gini coefficient for this node around 0 because 50% of the obs are bad and the other 50 are good? I am looking at the equation for gini coefficient in the link below and am not wrapping my head around it.
Any help would be appreciated.
Thanks
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