Density Approximation

Context

• Density Approximation is one of the Automatic Discretization algorithms for Continuous variables in Step 4 — Discretization and Aggregation of the Data Import Wizard.

Algorithm Details & Recommendations

• The Density Approximation discretization detects changes in the sign of the derivative of the Probability Density Function (PDF) in order to identify local minima and maxima.

• Between each local minimum and maximum, the algorithm creates a threshold.

• Also, the algorithm automatically detects the optimal number of bins, although you can specify the maximum number of bins.

• The minimum size permitted for bins is 1% of the data points.