Binning Method Binning is a technique for smoothing data or dealing with noisy data. The data is sorted first, and then the sorted values are dispersed into a number of buckets or bins in this approach. Binning methods provide local smoothing since they consult the vicinity of values. Smoothing can be accomplished in three ways: Bin smoothing entails: Each value in a bin is replaced by the bin's mean value when smoothing by bin means is used. Smoothing by bin median: Each bin value is replaced by its bin median value in this method. Smoothing by bin borders: In smoothing by bin boundaries, the bin boundaries are determined as the minimum and maximum values in a given bin. The nearest boundary value is then used to replace each bin value. Example: 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