Transform a numerical variable into categories


Problem: In some cases it may be desirable to transform a numerical variable into categories. If a variable has a skewed distribution, it may be helpful to categorize the values into quantiles. If we wish to analyze the circumstances in which a numerical outcome variable exceeds a certain value, a binary transformation may be helpful. Provide at least one real-world example of such a numerical data attribute and explain how transformation to a nominal representation helps.

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Business Management: Transform a numerical variable into categories
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