Sources:
The Paper Learning When to Be Discrete: Continuous vs. Categorical Predictors by David Pasta
There can be instances where it makes sense to treat a continuous predictor as categorical and a categorical predictor as continuous.
Treating a continuous predictor as categorical
- If the continuous variable has a linear relationship with the outcome, converting it into a categorical variable can remove information.
- On the other hand, if the relationship is not perfectly linear, then choosing to make the variable categorical can make sense enabling you to capture more complicated relationships.