Unlocking Categorical Data: When to Use One-Hot Encoding and Label Encoding?
Introduction: In machine learning, a common question arises: how do we use and represent categorical features? How can we convert them into numerical features that algorithms can understand and process? When do we use label encoding, and when is one-hot encoding the better choice? This blog post aims to provide a clear understanding of these concepts and their applications. Why Encoding? Encoding is a technique that transforms categorical variables, which are qualitative in nature, into numerical vectors. This allows machine learning algorithms to understand and process them effectively. Categorical variables can be either: Ordinal: These values have an inherent order, like ratings (Very Good, Good, Average, Bad, Very Bad). Nominal: These values have no intrinsic order, like colors (Red, Green, Blue, Yellow). How to do encoding? The most widely used encoding techniques are: 1. Label Encoding, 2. One Hot Encoding. Label encoding: This method assigns a unique integ...