The binning method is used to smooth data or process noisy data. In this method, the data is first sorted and then the sorted values are spread across multiple segments or cells. Because binning methods refer to a neighborhood of values, they perform local smoothing.
There are three approaches to performing smoothing:
Smoothing by bin means: In smoothing by bin means, each value in a bin is replaced by the mean value of the bin.
Smoothing by bin median: In this method each bin value is replaced by its bin median value.
Smoothing by bin boundary: In smoothing by bin boundaries, the minimum and maximum values in a given bin are identified as the bin boundaries. Each bin value is then replaced by the closest boundary value.
Sorted data for price (in dollars): 4, 8, 9, 15, 21, 21, 24, 25, 26, 28, 29, 34 Smoothing by bin means: - Bin 1: 9, 9, 9, 9 - Bin 2: 23, 23, 23, 23 - Bin 3: 29, 29, 29, 29 Smoothing by bin boundaries: - Bin 1: 4, 4, 4, 15 - Bin 2: 21, 21, 25, 25 - Bin 3: 26, 26, 26, 34 Smoothing by bin median : - Bin 1: 9 9, 9, 9 - Bin 2: 24, 24, 24, 24 - Bin 3: 29, 29, 29, 29
Below is Python implementation for the above algorithm —
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