Factor Balancing

 

The factors for each Characteristic are balanced to average 1 across the input dataset (the Training Data).

 

Factor Balancing occurs last, after Credibility weighting and Blending.

 

The average Blended factor across bins for the Characteristic is calculated, weighted by Modified Exposure (the xFactor column in the SQL Factor Table). The individual Blended factors are then divided by this average to arrive at Balanced factors that average out to 1.