Data problem

#1
I need a little help about a guidance how to represent "unlimited" as a value in regression variable.

For example, some phone plans includes finite amount of free minutes, but some include unlimited minutes. Therefore, I have a variable "free_minutes" but I don't know how to properly represent this "unlimited" value.

Thanks in advance.
 

Mean Joe

TS Contributor
#2
What are you going to do, what other variables do you have?

You're going to use free_minutes as an explanatory variable? I assume you have another variable like actual_minutes?

There's at least a couple things you could do:
1) Make the free_minutes variable a categorical variable, with the unlimited minutes as the highest category. Probably would end up grouping 5 free minutes and 10 free minutes into one category 5-10 free minutes.
2) Make another variable that is an indicator for the plan with unlimited minutes, let's call that variable unlimited_minutes. But then you still have the question of what to put for free_minutes.
 
#3
I am trying to estimate price of phone plan based on its characteristics (free minutes, free data, call price, etc.). What do you mean by actual_minutes?