Standardisation of target variable in HP Neural Node

[pvareschi]

Re: Neural Network Modelling

I have noticed that the HP Neural Node provides property "Target Standardization" (page 6.10 of course text): in what instances should a target variable be standardised?

[gcjfernandez]

This is relevant when the target variable is interval.

[pvareschi]

Of course; would a standadisation of an interval target help improve prediction estimates, for instance, if the target had a highly skewed distribution?

[gcjfernandez · Accepted solution]

I cannot generalize this. Always dependent on your data and the NN model structure and options.
Because there is also None available as an option try with None as the baseline. Then evaluate other methods and pick the one suitable for your data.