• Target Variable - In Gains#, Target Variable represents the event the model is to predict. For binary target variable case, value 1 is the event to predict and 0 is the non-event. A typical example of target variable is in direct mail marketing, where response and non-response to direct mail are coded in a variable to take value 1 (response) and 0 (non-response). A model is built to help management to target populatoin with highest responses. Target variable is also called dependent variable.