Consequences of dichotomization.

@article{Fedorov2009ConsequencesOD,
  title={Consequences of dichotomization.},
  author={Valerii V. Fedorov and Frank L. Mannino and Rongmei Zhang},
  journal={Pharmaceutical statistics},
  year={2009},
  volume={8 1},
  pages={50-61}
}
Dichotomization is the transformation of a continuous outcome (response) to a binary outcome. This approach, while somewhat common, is harmful from the viewpoint of statistical estimation and hypothesis testing. We show that this leads to loss of information, which can be large. For normally distributed data, this loss in terms of Fisher's information is at least 1-2/pi (or 36%). In other words, 100 continuous observations are statistically equivalent to 158 dichotomized observations. The… CONTINUE READING
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