Mark wants to have a better understanding of his client base at the credit union. To do so, he is running a report to show loan amount approval with corresponding credit scores. He realized the data set is quite large and wants to create categories by grouping. To do this, he needs to do all the following except
A) identify the value he wants to transform into smaller groups or bins.
B) remove 20% of the data to create a training set.
C) ensure the data sets are not overlapping.
D) identify how he wants the observations to be labeled in the bin.

Question

Quizplus · Accepted Answer

Removing 20% of the data to create a training set is not necessary for the process of categorizing or binning data. This step is more relevant to machine learning model training rather than categorizing data for analysis.

Mark Wants to Have a Better Understanding of His Client