Feature Engineering
In the previous section, we traversed the process of EDA. As part of the earlier process, we tested our business hypotheses by slicing and dicing the data and through visualizations. You might be wondering where we will use the intuitions that we derived from all of the analysis we did. The answer to that question will be addressed in this section.
Feature engineering is the process of transforming raw variables to create new variables and this will be covered later in the chapter. Feature engineering is one of the most important steps that influence the accuracy of the models that we build.
There are two broad types of feature engineering:
- Here, we transform raw variables based on intuitions from a business perspective. These intuitions are what we build during the exploratory analysis.
- The transformation of raw variables is done from a statistical and data normalization perspective.
We will look into each type of feature engineering...
