Resolved: Categorical Data in PCA
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Linear Algebra and Feature Selection
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A Step-by-Step Explanation of PCA on California Estates – Example
why is categorical data included in PCA when we already know that it doesn't have much variability and basically clustered in the same place, like type of property has 0s and 1s only.
1 answers ( 1 marked as helpful)
Hi Doaa!
Thanks for reaching out!
Even though binary variables like 0s or 1s might seem to have low variability, they can still represent important information that distinguishes different observations in the dataset. PCA will consider this information, and if it's relevant, it will be reflected in the principal components. In this case, the reduced dimensions will retain information that helps in predicting whether a property will be sold.
Hope this helps.
Best,
Ivan