Data Normalization

Definition

Data Normalization is a loose term that refers to data transformation activities, typically in preparation for the development of a Risk Model that aim to improve the informational content of the data by removing manifestly extraneous influences.

In a broad sense it may denote:

• the reduction of datasets to relatively uniform or homogeneous pools
• reduction of unrelated Data Outliers
• addressing Seasonality Effects

In a more narrow sense it may mean the scaling of data to conform to a normalized scale.

See Also

• Data Cleansing
• Data Scaling