Difference between revisions of "Categorical Variable"
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Revision as of 19:02, 20 January 2021
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
