How to decide number of bins for continuous variable to calculate IV and WOE value in logistic regression model building.
You can create bins with equal size and one more way is to use chaid it will give you suitable cuts…
Yes we can create bins using percentile or no. of obs in bins. but i am asking the no. of bins, does it related to the variability or variance of the variable. or creates groups and then compare means (significance level) to decide the no. of bins.
Last things does it really good practice to convert continuous into buckets and then use them in models (we are loosing information).