Its the term given to the iterative process of building good features for a better model. Its the process that makes relevant features (using formulas and relations between others).

We use it when we have a refined and optimised model.

What does it involve

  • Create new features from existing ones (e.g., ratios, interactions).
  • Transform features to better capture non-linear relationships.
  • Dimensionality Reduction if necessary.

The main techniques of feature engineering:

  • are selection (picking subset),
  • learning (picking the best),
  • extraction and combination(combining).

Example: Predicting house prices. Raw features might be square footage, number of bedrooms, and location. Feature engineering could involve: Combining square footage and bedrooms into a “living space” feature.

Example:

  • Decompose datetime information into separate features for date and time to capture their respective predictive powers.