### Encoding Variables: Translating Your Data so the Computer Understands It

Humans and computers don't understand data in the same way, and an active area of research in AI is determining how AI "thinks" about data. For example, the recent Quanta article Where We See Shapes, AI Sees Textures discusses an inherent disconnect between how humans and computer vision AI interpret images. The article addresses the implicit assumption many people have that when AI works with an image, it interprets the contents of the image the same way people do- by identifying the shapes of the objects. However, because most AI interprets images at a pixel level, it is more intuitive for the AI to label images by texture (i.e., more pixels in an image represent an object's texture than an object's outline or border) than by shape. Another useful example of this is in language.

### Linear Regression for Business Statistics Coursera

About this course: Regression Analysis is perhaps the single most important Business Statistics tool used in the industry. Regression is the engine behind a multitude of data analytics applications used for many forms of forecasting and prediction. This is the fourth course in the specialization, "Business Statistics and Analysis". The course introduces you to the very important tool known as Linear Regression. You will learn to apply various procedures such as dummy variable regressions, transforming variables, and interaction effects.

### How to Improve Machine Learning: Tricks and Tips for Feature Engineering

Predictive modeling is a formula that transforms a list of input fields or variables into some output of interest. Feature engineering is simply a thoughtful creation of new input fields from existing input fields, either in an automated fashion or manually, with valuable inputs from domain expertise, logical reasoning, or intuition. The new input fields could result in better inferences and insights from data and exponentially increase the performance of predictive models. Feature engineering is one of the most important parts of the data preparation process, where deriving new and meaningful variables takes place. Feature engineering enhances and enriches the ingredients needed for creating a robust model.

### Data Science Simplified Part 8: Qualitative Variables in Regression Models

The model predicts or estimates price (target) as a function of engine size, horsepower, and width (predictors).

### A Beginner's Guide to EDA with Linear Regression -- Part 3

Mother Race -- but what we are seeing at X-Axis here is a bunch of variables. When you look closer you would notice that each variable seems to be representing each unique value of Mother Race variable. Linear Regression function'lm' in R automatically transforms a categorical variable into something called'dummy' variables. It will create a column for each categorical value (e.g. Japanese) and have a value of 0 or 1 based on whether a given row matches a given column (e.g.