Grouping and binning

Grouping and binning are techniques used by analysts and statisticians to better understand data and draw insights from it. For example, you might sell products that have various sizes, such as extra small, small, medium, large, extra large, and 2X large. When you look at the sales data, the number of extra small, extra large, and 2X large sales might be much less than the other categories of products. So, in cases such as that, you might want to redefine the categories into small, medium, and large, grouping small and extra small together and large, extra large, and 2X large together to best understand your sales patterns by aggregating the data first. The same technique can be used for numeric or date types; however, in those cases, it's typically referred to as binning. For example, you may have sales data that is daily, but you want to understand long-term patterns, so you bin the data together by aggregating the daily data into weekly or monthly bins...