hello to all
I want to categorized a data sample based on the income into categories such as " low class" " high calss" "middle class" and then run ordered logit to see propability that people with different gender and race fall into different category. Also, I can increase my categories to 5 and add " lower middle class" and " higher middle class". How can I find out which one is better, a model with 3 categories or 5 categories?which one performs better ?
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