问题如下:
Based on Exhibit 1, for the firm with ID #3, Steele should compute the scaled value for the “Interest Expense” variable as:
选项:
A. 0.008
B. 0.083
C. 0.250
解释:
B is correct. Steele uses normalization to scale the financial data. Normalization is the process of rescaling numeric variables in the range of [0, 1]. To normalize variable X, the minimum value (Xmin) is subtracted from each observation
(Xi), and then this value is divided by the difference between the maximum and minimum values of X (Xmax – Xmin) :The firm with ID #3 has an interest expense of 1.2. So, its normalized value is calculated as Xi (normalized) =0.083
id3=1.2 max=1.5 min=0.4 按normalization 算完,等于0.7272呀 而且题干中没有具体指明是normalization还是standardization,如何判断是哪个公式