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MLS-C01 · Question #194

A data engineer at a bank is evaluating a new tabular dataset that includes customer data. The data engineer will use the customer data to create a new model to predict customer behavior. After creati

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Modeling

Question

A data engineer at a bank is evaluating a new tabular dataset that includes customer data. The data engineer will use the customer data to create a new model to predict customer behavior. After creating a correlation matrix for the variables, the data engineer notices that many of the 100 features are highly correlated with each other. Which steps should the data engineer take to address this issue? (Choose two.)

Options

  • AUse a linear-based algorithm to train the model.
  • BApply principal component analysis (PCA).
  • CRemove a portion of highly correlated features from the dataset.
  • DApply min-max feature scaling to the dataset.
  • EApply one-hot encoding category-based variables.

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Topics

#Feature Preprocessing#Multicollinearity#Dimensionality Reduction#Principal Component Analysis
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