Feature Engineering Made Easy

Mathematical operations allowed

At the ratio level, we may multiply and divide values together. This may not seem like a big deal, but it does allow us to make unique observations about data at this level that we cannot do at lower levels. Let's jump into a few examples to see exactly what this means.

Example:

When working with financial data, we almost always have to work with some monetary value. Money is at the ratio level because we have a concept of having "zero money". For this reason, we may make statements such as:

• $100 is twice as much as $50 because 100/50 = 2

• 10mg of penicillin is half as much as 20mg of penicillin because 10/20 = .5

It is because of the existence of zero that ratios have meaning at this level.

Non-example: ...