Hi,
I was curious to see if there was a procedure that regroups variables in a meaningful, statistically sound way.
I have a variable with 10 different levels that I would like to reduce to 5 levels. I can regroup on my own but wanted to see if there was a faster, more sophisticated way of doing so.
Help is greatly appreciated!
I was curious to see if there was a procedure that regroups variables in a meaningful, statistically sound way.
I suppose the answer depends on what you think is "meaningful". What do you think is "meaningful"?
To make this concrete, how would you combine the following groups? What would be a meaningful way to do this?
Toyota
Nissan
Mazda
Honda
Ford
Chevrolet
Volkswagen
Chrysler
Kia
If "meaningful" implies something like "these values have some similar characteristics" such as price then you may be looking for Clusters.
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