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8. Building Price Models > Heterogeneous Variables

Heterogeneous Variables

The dataset you built at the start of this chapter was designed to be artificially simple—specifically, all the variables used to predict the price are roughly comparable and are all important to the final result.

Since all the variables fall within the same range, it’s meaningful to calculate distances using all of them at once. Imagine, however, if you introduced a new variable that influenced the price, such as the size of the bottle in milliliters. Unlike the variables you’ve used so far, which were between 0 and 100, its range would be up to 1,500. Look at Figure 8-6 to see how this would affect the nearest neighbor or distance-weighting calculations.


  

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