I often have to analyze data where the dependent, independent, or both variables were recorded in bins (intervals), when they really should have been recorded as continuous. Most of the time, the intervals are not even equal, and the highest is unbounded. For example price of an item= $0-20, $21-100, $101-500, $501-5000, $5001 and up. Say that price is a function of weight of the item, which is measured exactly to the nearest gram. Maybe these are truffles... What is the best way to salvage this situation, and build a regression model of price as a function of weight? Rick Wicklin has some posts that seem close to this, such as http://blogs.sas.com/content/iml/2013/04/17/quantile-regression-vs-binning.html , but I am unsure. Looking forward to all suggestions!
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