Knüppel, Lothar, Oliver Hermsen, "Median Split, k-group Split, and Optimality in Continuous Populations", AStA Advances in Statistical Analysis, Vol. 94, No. 1, (March 2010), 53-74.
Abstract: Continuous populations are grouped in many social, economic, medical, or technical fields of research. However, by grouping them, a lot of information provided by the continuous population is lost. Especially the median split, which is still adopted by many researchers, and its generalization to an equiprobable k-group split lead to a high efficiency loss. Here, this loss of information is investigated by analytical and numerical analyses for some typical symmetric and skew population distributions often found in applications. Various distribution parameters, numbers of groups, and split methods are taken from theoretical considerations and real data sets. Losses sometimes in excess of 50% can be reduced by optimal grouping.
Keywords: Categorization, Median split, Continuous distributions, Numerical methods.