Create features from existing data that may add value.

Free SOA Exam PA (Predictive Analytics) lesson in Data Transformations and Unsupervised Learning Techniques. 13 min read, ~2,024 words.

A variable is a raw recorded column; a feature is a variable reshaped to help a model learn. Feature generation adds value when raw fields are skewed, high cardinality, non linear, or not on a comparable scale. Single function transforms (log, square root) compress skew and linearize multiplicative effects. One...

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