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@@ -77,15 +77,17 @@ bins if the condition is not satisfied.
**Categorical features**
-For `$M$` categorical features, one could come up with `$2^M-1$` split candidates. However, for
-binary classification, the number of split candidates can be reduced to `$M-1$` by ordering the
+For `$M$` categorical feature values, one could come up with `$2^(M-1)-1$` split candidates. For
+binary classification, we can reduce the number of split candidates to `$M-1$` by ordering the
categorical feature values by the proportion of labels falling in one of the two classes (see
Section 9.2.4 in
[Elements of Statistical Machine Learning](http://statweb.stanford.edu/~tibs/ElemStatLearn/) for
details). For example, for a binary classification problem with one categorical feature with three
categories A, B and C with corresponding proportion of label 1 as 0.2, 0.6 and 0.4, the categorical
features are ordered as A followed by C followed B or A, B, C. The two split candidates are A \| C, B
-and A , B \| C where \| denotes the split.
+and A , B \| C where \| denotes the split. A similar heuristic is used for multiclass classification
+when `$2^(M-1)-1$` is greater than the number of bins -- the impurity for each categorical feature value
+is used for ordering.
### Stopping rule