Togaware DATA MINING
Desktop Survival Guide
by Graham Williams
Google

Nolan Groups

Nolan Groups work by finding the minimum value of a variable for the observations in a group and allocates it a value of 0.01 and the maximum value and allocates it a value of 99.9. All values in between are allocated a new value which is representational of the position and rank in the original variable. When used in conjunction with a categoric variable, the observations are segmented by the values of the categoric variable and all values within the group are then transformed using the minimum value and allocates it a value of 0.01 and the maximum value and allocates it a value of 99.9. All values in between are allocated a new value which is representational of the position and rank in the original variable.

Nolan Groups is a methodology that applies the theory of relativity to analytics, by transforming measurement variables between 0.01 and 99.9 to a specific subset of bins's which represent sub populations identified by their association with a value within a categorical variable. By using this transformation, observations are specifically assigned to a position within the sample, that represents their position relative to only other observations within the same bin.

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