Difference between revisions of "Categorical Variable"

From Open Risk Manual
 
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A '''Categorical Variable''' in the context of [[Quantitative Risk Management]] is any variable that ranges along a finite number of possible values. Categorical variables can be used in the representation of a [[Risk Model]], encoding [[Explanatory Variables]], [[Risk Factor]] or [[Risk Metric]]
 
A '''Categorical Variable''' in the context of [[Quantitative Risk Management]] is any variable that ranges along a finite number of possible values. Categorical variables can be used in the representation of a [[Risk Model]], encoding [[Explanatory Variables]], [[Risk Factor]] or [[Risk Metric]]
  
Numerical Variables can be converted to [[Categorical Variable]] of the Ordinal variety via various discretization methods
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[[Numerical Variable | Numerical Variables]] can be converted to categorical variables of the Ordinal variety via various discretization (binning) methods
  
  
 
[[Category:Quantitative Tools]]
 
[[Category:Quantitative Tools]]

Latest revision as of 17:06, 10 September 2019

Definition

A Categorical Variable in the context of Quantitative Risk Management is any variable that ranges along a finite number of possible values. Categorical variables can be used in the representation of a Risk Model, encoding Explanatory Variables, Risk Factor or Risk Metric

Numerical Variables can be converted to categorical variables of the Ordinal variety via various discretization (binning) methods

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