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Using Dummy Variables To Transform Categorical Data. In some data sets, it might make more sense to treat zip codes as categorical variables instead of numerical ones. This would allow you to use dummy variables. If you had data on home prices in different zip codes, you could create a dummy variable for each zip code.

Nominal Variables : All nouns are nominal variables and come under discrete. That says, names of sales managers (people), geographies, countries, states and cities, even the addresses and zip codes (places), products and flowers (things) are discrete.

When it comes to USA zip codes, they are always 5 digits long. However, sometimes these codes may also include leading zeros. If you store these zip codes as integers, any leading zeros would be stripped, resulting in missing data. As such, it's usually better to store zip codes as 5 character strings.

Indeed, it turns out your zip code, when combined with other purchase data, is quite revealing! Stores want your ZIP code because, combined with your name from your credit card, they can use it to find out other information about you from commercial databases, like your full mailing address.

Nominal variables may be represented by numbers. If so, these numbers are used merely as labels and are not subjected to arithmetic operations. “Zip Code” is a nominal variable whose values are represented by numbers.

Some variables, such as social security numbers and zip codes, take numerical values, but are not quantitative: They are qualitative or categorical variables. The sum of two zip codes or social security numbers is not meaningful.

Because along with other information, the ZIP code may provide the final clue to figuring out your address, phone number and past purchasing details, if a sales clerk sees your name while swiping your credit card.

Zip code targeting is a great option for your business if you are looking to target people in a certain area. You can reach your potential customers better with this kind of targeting. This is a great way for you to figure out the location of your target market.

Using Dummy Variables To Transform Categorical Data. In some data sets, it might make more sense to treat zip codes as categorical variables instead of numerical ones. This would allow you to use dummy variables. If you had data on home prices in different zip codes, you could create a dummy variable for each zip code.

Nominal Variables : All nouns are nominal variables and come under discrete. That says, names of sales managers (people), geographies, countries, states and cities, even the addresses and zip codes (places), products and flowers (things) are discrete.

When it comes to USA zip codes, they are always 5 digits long. However, sometimes these codes may also include leading zeros. If you store these zip codes as integers, any leading zeros would be stripped, resulting in missing data. As such, it's usually better to store zip codes as 5 character strings.

Indeed, it turns out your zip code, when combined with other purchase data, is quite revealing! Stores want your ZIP code because, combined with your name from your credit card, they can use it to find out other information about you from commercial databases, like your full mailing address.

Nominal variables may be represented by numbers. If so, these numbers are used merely as labels and are not subjected to arithmetic operations. “Zip Code” is a nominal variable whose values are represented by numbers.

Some variables, such as social security numbers and zip codes, take numerical values, but are not quantitative: They are qualitative or categorical variables. The sum of two zip codes or social security numbers is not meaningful.

Because along with other information, the ZIP code may provide the final clue to figuring out your address, phone number and past purchasing details, if a sales clerk sees your name while swiping your credit card.

Zip code targeting is a great option for your business if you are looking to target people in a certain area. You can reach your potential customers better with this kind of targeting. This is a great way for you to figure out the location of your target market.