From the course: Executive Guide to Predictive Modeling Strategy at Scale
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Dummy coding
From the course: Executive Guide to Predictive Modeling Strategy at Scale
Dummy coding
- [Instructor] Now, we're going to take a moment to talk about an aspect of data preparation, which might at first seem like a minor technical detail. But pretty much everyone who's involved in the project, both the modelers as well as the folks that are helping provide and prep the data need to know about this, it's called dummy coding. So let's say you're making a prediction, and one of your predictors is employment category. So here, we've got folks on salary, we've got some independent contractors, some part-time wage and some full-time wage. In general, what we're going to do now is we're going to transform this so that whenever they are true in a particular category, they're going to get a one, and otherwise they're going to get a false. So again, we've got four salary IC we'll call it, part-time, full-time. What does that end up looking like? It ends up looking like this. So our original variable had four…
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