Chapter 4 Transformations
In many situations you will need to transform and modify the raw values of your data.
Transformations are useful for many reasons, for example:
- to change the scale of a variable from continuous to discrete
- to linearize a variable that has a non-linear distribution
- to make distributions more symmetric
- to re-center the data (mean-center, or center by other reference value)
- to stretch or compress the values (by standard deviation, by range, by eigenvalues)
- to binarize or dummify a categorical variable
In this chapter, I will cover common transformations:
- dummyfication
- mean-center
- standardization
- logarithmic transformation
- power transformation