Data Set Normalisation for Reference Boundary System

Abstract. Reference boundary system construction requires normalisation of variable values. This system is comprehended as a set of restrictions and/or recommendations, which enables the identification of the performance level of business units (economic objects). Restrictions and recommendations are suggested by theory of economy, expert's opinions and/or researchers knowledge and are formulated in boundary model which declares so-called veto thresholds for variables' values, or recommended values that imply a minimum satisfaction level in the object's performance assessment. Normalisation procedures distinguish three types of variables: stimuli, destimuli and nominants. For each type the appropriate normalisation formula is given. The resulting procedures are illustrated using data from Polish banking market