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MLS-C01 · Question #201

A global financial company is using machine learning to automate its loan approval process. The company has a dataset of customer information. The dataset contains some categorical fields, such as…

The correct answer is A. Use a one-hot encoder for the categorical fields in the dataset. Perform standardization on. It's overfitting so regularization is needed, need apply scaling on financial data fields as it's for regression problem; one hot encoding for city of the house field.

Modeling

Question

A global financial company is using machine learning to automate its loan approval process. The company has a dataset of customer information. The dataset contains some categorical fields, such as customer location by city and housing status. The dataset also includes financial fields in different units, such as account balances in US dollars and monthly interest in US cents. The company’s data scientists are using a gradient boosting regression model to infer the credit score for each customer. The model has a training accuracy of 99% and a testing accuracy of 75%. The data scientists want to improve the model’s testing accuracy. Which process will improve the testing accuracy the MOST?

Options

  • AUse a one-hot encoder for the categorical fields in the dataset. Perform standardization on
  • BUse tokenization of the categorical fields in the dataset. Perform binning on the financial
  • CUse a label encoder for the categorical fields in the dataset. Perform L1 regularization on
  • DUse a logarithm transformation on the categorical fields in the dataset. Perform binning on

How the community answered

(48 responses)
  • A
    79% (38)
  • B
    13% (6)
  • C
    2% (1)
  • D
    6% (3)

Explanation

It's overfitting so regularization is needed, need apply scaling on financial data fields as it's for regression problem; one hot encoding for city of the house field.

Topics

#Feature Engineering#Data Preprocessing#Overfitting#Categorical Data Encoding

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