Create a numerical version of the binned variable

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Reference no: EM133258835

For this problem, you will load and perform some cleaning steps on a dataset in the provided BankData.csv, which is data about loan approvals from a bank in Japan (it has been modified from the original for our purposes in class, so use the provided version). Specifically, you will use visualization to examine the variables and normalization, binning and smoothing to change them in particular ways.

d. Choose one of the numerical variables to work with for this problem. Let's call it v. Create a new variable called v_bins that is a binned version of that variable. This v_bins will have a new set of values like low, medium, high. Choose the actual new values (you don't need to use low, medium, high) and the ranges of v that they represent based on your understanding of v from your visualizations. You can use equal depth, equal width or custom ranges. Explain your choices: why did you choose to create that number of values and those particular ranges?

e. Building on (d), use v_bins to create a smoothed version of v. Choose a smoothing strategy to create a numerical version of the binned variable and explain your choices.

Reference no: EM133258835

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