One of the shortcomings of regression (both linear and logistic) is that it doesn’t handle categorical variables with a very large number of possible values (for example, postal codes). You can get around this, of course, by going to another modeling technique, such as Naive Bayes; however, you lose some of the advantages of regression [...] Related posts: Modeling Trick: Masked Variables A bit more on impact coding Modeling Trick:…
Related posts: Modeling Trick: Impact Coding of Categorical Variables with Many Levels Modeling Trick: the Signed Pseudo Logarithm Learn Logistic Regression (and beyond)
Much of the data that the analyst uses exhibits extraordinary range. For example: incomes, company sizes, popularity of books and any “winner takes all process”; (see: Living in A Lognormal World). Tukey recommended the logarithm as an important “stabilizing transform” (a transform that brings data into a more usable form prior to generating exploratory statistics, [...] Related posts: Modeling Trick: Masked Variables Modeling Trick: Impact Coding of Categorical Variables with…
