Description: Ordinal encoding is a technique used to convert categorical variables into numerical values based on their order. Unlike nominal encoding, which assigns arbitrary numbers to categories without a specific order, ordinal encoding takes into account the hierarchy of categories. This is particularly useful in situations where categories have an inherent meaning of order, such as in satisfaction scales (e.g., ‘very dissatisfied’, ‘dissatisfied’, ‘neutral’, ‘satisfied’, ‘very satisfied’). By transforming these categories into numbers, statistical analysis and the application of machine learning algorithms that require numerical data are facilitated. Ordinal encoding allows models to correctly interpret the relationship between categories, which can improve the accuracy of predictions. However, it is important to note that ordinal encoding assumes that the distance between numerical values is uniform, which may not be true in all cases. Therefore, its use should be carefully considered based on the nature of the data and the context of the analysis.
