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Feature Engineering - Creating New Insights

What feature engineering is

Feature engineering is the process of creating better input variables so the model can learn more easily.

Good features:

  • summarize raw information
  • reduce noise
  • expose relationships
  • align with how the real world works

Common feature engineering patterns

1) Date/time features

From a timestamp you can create:

  • hour of day
  • day of week
  • weekend flag
  • month

Example: user activity often depends on time.

2) Aggregations

  • average order value per user
  • number of purchases in last 30 days

3) Ratios and differences

  • profit = revenue - cost
  • BMI = weight / height²

4) Binning

Convert a numeric variable into buckets:

  • age buckets: 0–18, 19–30, 31–50, 50+

5) Text features

  • length of message
  • count of exclamation marks
  • TF-IDF vectors (later phase)

The golden rule: do it without leakage

Feature must be computable at prediction time.

Bad feature example:

  • “number of refunds after purchase” while predicting fraud at purchase time

Feature engineering in scikit-learn pipelines

You can use FunctionTransformerFunctionTransformer for simple transformations.

Simple custom feature function
import numpy as np
from sklearn.preprocessing import FunctionTransformer
 
def add_log1p(X):
    # Works on numpy arrays; for pandas, you can select columns before
    return np.log1p(X)
 
log_transformer = FunctionTransformer(add_log1p)
Simple custom feature function
import numpy as np
from sklearn.preprocessing import FunctionTransformer
 
def add_log1p(X):
    # Works on numpy arrays; for pandas, you can select columns before
    return np.log1p(X)
 
log_transformer = FunctionTransformer(add_log1p)

Mini-checkpoint

Pick a dataset you know and list:

  • 3 raw features
  • 3 engineered features you could derive
  • confirm each engineered feature is available at prediction time

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