When too many variables are categorized in an analysis, several potential issues may occur. Which of the following is not one of the issues that may occur?
A) model performance suffers.
B) rarely occurring categories may not be captured accurately.
C) difficulty in differentiating among observations.
D) an increase in the number of categories as the data set becomes larger.

Question

Quizplus · Accepted Answer

The increase in the number of categories as the data set becomes larger is not a direct consequence of categorizing too many variables. Instead, it's a potential issue related to the size of the data set itself, not the act of categorizing variables.

When Too Many Variables Are Categorized in an Analysis, Several