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Learn AI with Python · Lesson

Target Encoding and Advanced Categorical Handling

Target encoding, frequency encoding, binary encoding, embeddings for high-cardinality columns.

The Categorical Encoding Problem

Models need numbers, but categories are text. One-hot encoding works for few categories, but high-cardinality features (thousands of cities, products) create too many columns.

Limits of One-Hot and Label Encoding

One-hot explodes dimensionality. Plain label encoding invents a false ordering (city 5 is not greater than city 2). For high-cardinality data we need smarter encodings.

All lessons in this course

  1. Feature Selection Methods
  2. Creating Interaction and Polynomial Features
  3. Target Encoding and Advanced Categorical Handling
  4. Automated Feature Engineering with Featuretools
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