Question

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.

Answer 1

Answer: D. an increase in the number of categories as the data set becomes larger.

Explanation:

When too many variables are categorized in an analysis, there are different potential issues may occur, some of these issues include:

• model performance suffers.

• rarely occurring categories may not be captured accurately.

• difficulty in differentiating among observations.

It should be noted that an increase in the number of categories as the data set becomes larger isn't one of the issues. Therefore, the correct option is D.