Max Number of Categories Allowed in a Predictor Use this option to specify the maximum number of categories allowed in a predictor variable. For predictors with more than this number of categories, the categories are grouped. Note: This option is enabled only when Penalized is selected as the Variable Selection Method. To Specify the Maximum Number of Categories: Select Penalized as the Variable Selection Method. Either type the maximum number of categories to allow per predictor, in the text field, or move the slider to the right or to the left to specify a value. Tip: To change the scale of the slider, right-click on the slider and select Rescale Slider from the pop-up menu. Change the upper and/or lower boundaries in the window that appears, to rescale the slider and click OK.