This paper introduces to the QSAR community a novel method for modeling and
understanding non-linear relationships between biological potency and chem
ical structure properties of molecules. The approach, GIFI-PLS, is based on
"binning" of quantitative X-variables into categorical variables. Each cat
egorical variable is then expanded into a set of linked 1/0 dummy variables
, which enable modeling of non-linearity. By way of four QSAR data sets, it
is demonstrated that GIFI-PLS is useful for modeling of non-linearity and
discontinuity in QSAR, and that the predictive power of a QSAR model may im
prove.