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Demographics and Business Dimensions: The Basics

Posted by on Mar 12, 2020 in Blog | No Comments

The Dimensions databases, both demographic and business, are intended for use in statistical models and for neighborhood description. Both Demographic Dimensions and Business Dimensions are modeling databases at the block group and higher levels of geography that are useful for creating statistical models, site signature reports, and general executive summary information. Unlike discrete neighborhood classification systems (e.g. Panorama), these databases provide continuous measurement scores across the dominant demographic and business components that differentiate neighborhoods.

Both databases are based on the well-known data reduction tool of Principal Components Analysis, in which the common patterns found within a large number of variables are reduced to a core set of discriminating factors.

Each Dimensions database is normally provided as a set of continuous variables which are minimally auto correlated and have a mean of zero and unit variance. Factors are useful in a broad spectrum of applications, including direct marketing, model development and neighborhood descriptions.

More information on Demographics and Business Dimensions can be found here, and the full methodology is located here.

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