Slide 1:

Introduction to Target Encoding

Target Encoding is a technique used to encode categorical variables in supervised machine learning problems. It aims to capture the relationship between the categorical feature and the target variable, resulting in a more informative representation than traditional one-hot encoding.

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# No code for the introduction slide

Slide 2:

Mean Target Encoding

Mean Target Encoding replaces each category with the mean of the target variable for that category. This way takes into account the relationship between the categorical feature and the target variable, potentially improving predictive performance.

Code:

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from category_encoders import MEstimateEncoder

# Create the encoder
encoder = MEstimateEncoder()

# Fit and transform the categorical data
X_encoded = encoder.fit_transform(X, y)

Slide 3:

Smoothing in Mean Target Encoding

To address the issue of overfitting for rare categories, a smoothing factor is often introduced in Mean Target Encoding. This factor adjusts the encoded values by bringing them closer to the global mean, reducing the impact of categories with few observations.

Code:

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from category_encoders import MEstimateEncoder

# Create the encoder with smoothing
encoder = MEstimateEncoder(m=0.5)  # m=0.5 is a common smoothing value

# Fit and transform the categorical data
X_encoded = encoder.fit_transform(X, y)

Slide 4:

Weight of Evidence Encoding

Weight of Evidence (WoE) Encoding is another popular technique that uses the log-odds ratio of the target variable for each category. It captures the predictive power of each category and can be useful when the target variable is binary.

Code:

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from category_encoders import WoEEncoder

# Create the encoder
encoder = WoEEncoder()

# Fit and transform the categorical data
X_encoded = encoder.fit_transform(X, y)

Slide 5:

Leave-One-Out Encoding

Leave-One-Out Encoding is a variation of Mean Target Encoding that addresses the issue of overfitting by leaving out the current observation when computing the mean for its category. This way helps to reduce the influence of the current observation on its own encoding.

Code:

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from category_encoders import LeaveOneOutEncoder

# Create the encoder
encoder = LeaveOneOutEncoder()

# Fit and transform the categorical data
X_encoded = encoder.fit_transform(X, y)

Slide 6:

Handling New Categories

When working with new, unseen categories during inference, target encoding techniques need to handle these cases appropriately. A common approach is to replace new categories with a global mean or a specified value.

Code:

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from category_encoders import MEstimateEncoder

# Create the encoder with a handling strategy for new categories
encoder = MEstimateEncoder(handle_unknown='value', handle_missing='value')

# Fit and transform the training data
X_train_encoded = encoder.fit_transform(X_train, y_train)

# Transform the test data (new categories will be replaced with the specified value)
X_test_encoded = encoder.transform(X_test)

Slide 7:

Ordinal Encoding

If the categorical variable has an inherent order (e.g., low, medium, high), Ordinal Encoding can be used. It assigns a numerical value to each category based on its order, preserving the ordinal relationship.

Code:

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from category_encoders import OrdinalEncoder

# Create the encoder
encoder = OrdinalEncoder()

# Fit and transform the categorical data
X_encoded = encoder.fit_transform(X)

Slide 8:

Target Encoding with Scikit-learn

While Scikit-learn does not provide built-in support for target encoding, it can be implemented using custom transformers or with the help of external libraries like category_encoders.

Code:

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from sklearn.preprocessing import LabelEncoder
from sklearn.compose import ColumnTransformer

# Label encode the categorical feature
label_encoder = LabelEncoder()
X['category'] = label_encoder.fit_transform(X['category'])

# Create a custom target encoder
target_encoder = MeanTargetEncoder(smoothing=0.5)

# Apply target encoding to the categorical feature
ct = ColumnTransformer([('target_encoder', target_encoder, ['category'])], remainder='passthrough')
X_encoded = ct.fit_transform(X, y)

Slide 9:

Encoding Ordinal vs. Nominal Categories

When dealing with categorical variables, it’s important to distinguish between ordinal and nominal categories. Ordinal categories have a natural order, while nominal categories do not. Applying the correct encoding technique based on the category type can improve model performance.

Code:

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from category_encoders import OrdinalEncoder, TargetEncoder

# Encode an ordinal categorical feature
ordinal_encoder = OrdinalEncoder()
X['ordinal_feature'] = ordinal_encoder.fit_transform(X['ordinal_feature'])

# Encode a nominal categorical feature
target_encoder = TargetEncoder()
X['nominal_feature'] = target_encoder.fit_transform(X['nominal_feature'], y)

Slide 10:

Encoding Cyclical Categories

Some categorical variables may have a cyclical nature, such as days of the week or months of the year. In these cases, a cyclical encoding technique can be useful to capture the periodic relationship between categories.

Code:

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import numpy as np

# Custom cyclical encoding function
def cyclical_encoding(X, col, max_val):
    X[col] = np.sin(2 * np.pi * X[col] / max_val)
    return X

# Apply cyclical encoding to the 'day_of_week' feature
X['day_of_week'] = cyclical_encoding(X, 'day_of_week', max_val=7)

Slide 11:

Encoding High-Cardinality Categories

When dealing with high-cardinality categorical variables (many unique categories), target encoding techniques can be computationally expensive and prone to overfitting. In such cases, alternative techniques like entity embeddings or hashing may be more appropriate.

Code:

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from category_encoders import HashingEncoder

# Create the encoder
encoder = HashingEncoder()

# Fit and transform the high-cardinality categorical data
X_encoded = encoder.fit_transform(X)

Slide 12:

Evaluating Target Encoding

It’s important to evaluate the performance of target encoding techniques on your specific dataset and problem. Techniques like cross-validation and model evaluation metrics can help assess the effectiveness of the encoding approach.

Code:

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from sklearn.model_selection import cross_val_score
from sklearn.linear_model import LogisticRegression

# Create a model pipeline with target encoding
pipeline = make_pipeline(target_encoder, LogisticRegression())

# Evaluate the pipeline using cross-validation
scores = cross_val_score(pipeline, X, y, cv=5, scoring='accuracy')
print(f'Mean accuracy: {scores.mean():.3f}')

Slide 13:

Handling Multicollinearity

When using target encoding, it’s important to be aware of potential multicollinearity issues, as the encoded features may be highly correlated with the target variable. Techniques like regularization or feature selection can help mitigate this issue.

Code:

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from sklearn.linear_model import LogisticRegression
from sklearn.feature_selection import SelectFromModel

# Create a target encoder
target_encoder = TargetEncoder()
X_encoded = target_encoder.fit_transform(X, y)

# Apply L1 regularization and feature selection
logit = LogisticRegression(penalty='l1', solver='liblinear', C=1.0)
selector = SelectFromModel(logit, prefit=False)
X_selected = selector.fit_transform(X_encoded, y)

Slide 14: Additional Resources

For further reading and exploration of target encoding techniques, here are some recommended resources from arXiv.org:

• “A Machine Learning Trick: Target Encoding” by Jason Brownlee (https://machinelearningmastery.com/use-target-encoding-for-categorical-data-with-category-encoders-in-python/)
• “Target Encoding for Categorical Features” by Micci-Barreca (https://arxiv.org/abs/2105.05094)
• “Target Encoding: Encoding Categorical Features for Machine Learning” by Cherkauer (https://arxiv.org/abs/2207.05848)
• “Regularized Target Encoding” by Burlachenko et al. (https://arxiv.org/abs/2203.16146)

🎊 Awesome Work!

You’ve just learned some really powerful techniques! Don’t worry if everything doesn’t click immediately - that’s totally normal. The best way to master these concepts is to practice with your own data.

What’s next? Try implementing these examples with your own datasets. Start small, experiment, and most importantly, have fun with it! Remember, every data science expert started exactly where you are right now.

Keep coding, keep learning, and keep being awesome! 🚀