Assume that there are n rows with seven variables, A, B, C, D, E, F and G, in the data. We use variable E as an example in the calculations below. All target variables are normalized in the same way.
If we select A as baseline variable, the normalized value of ei for variable E in the ith record is calculated as:
if ei > ai |
|
if ei < ai |
where
ai = the value for variable A in the ith row.
See also: