What is nominal variable in SAP BI-RA-PA - SAP Predictive Analytics?

SAP Term: nominal variable

• Component: BI-RA-PA

• Component Name: SAP Predictive Analytics

• Description: Variable whose values are discrete, that is, belong to categories, and are not sortable. Nominal variables may be numerical or textual. Binary variables are considered nominal variables.

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• Key Concepts: 
  A nominal variable is a type of data used in SAP Predictive Analytics. It is a categorical variable that is used to classify data into distinct categories. Nominal variables are not ordered and do not have a numerical value associated with them. 
  
  How to use it: 
  Nominal variables are used to classify data into distinct categories. For example, in SAP Predictive Analytics, nominal variables can be used to classify customers into different segments based on their preferences or behaviors. 
  
  Tips & Tricks: 
  When using nominal variables, it is important to ensure that the categories are mutually exclusive and exhaustive. This means that each category should be distinct from the others and that all possible values should be included in the categories. 
  
  Related Information: 
  Nominal variables are one of four types of data used in SAP Predictive Analytics. The other three types are ordinal, interval, and ratio variables. Each type of variable has its own unique characteristics and uses.