Best practice 11 – performing feature engineering with domain expertise

If we are lucky enough to possess sufficient domain knowledge, we can apply it in creating domain-specific features; we utilize our business experience and insights to identify what is in the data and to formulate what from the data correlates to the prediction target. For example, in Chapter 9, Stock Price Prediction with Regression Algorithms, we designed and constructed feature sets for the prediction of stock prices based on factors that investors usually look at when making investment decisions.

While particular domain knowledge is required, sometimes we can still apply some general tips in this category. For example, in fields related to customer analytics, such ...

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