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Data Encoding and Transformation

Lesson 4: Data Encoding and Transformation

Machine learning models require numerical input. Since telecom datasets contain many categorical variables (such as contract type and payment method), these must be converted into numerical form before model training.

Binary Encoding: Used for yes/no type variables.

One-Hot Encoding: Used for multi-class categorical features to prevent false ordinal assumptions.

Why It Matters:

  • Ensures compatibility with machine learning algorithms.
  • Prevents the model from misinterpreting categorical values as ranked numbers.
  • Maintains fairness and accuracy in prediction.

Proper encoding ensures that categorical customer information contributes correctly to churn prediction.