A Data Scientist Needs to Analyze Employment Data

question 106

Multiple Choice

A Data Scientist needs to analyze employment data. The dataset contains approximately 10 million observations on people across 10 different features. During the preliminary analysis, the Data Scientist notices that income and age distributions are not normal. While income levels shows a right skew as expected, with fewer individuals having a higher income, the age distribution also shows a right skew, with fewer older individuals participating in the workforce. Which feature transformations can the Data Scientist apply to fix the incorrectly skewed data? (Choose two.)

• A) Cross-validation
• B) Numerical value binning
• C) High-degree polynomial transformation
• D) Logarithmic transformation
• E) One hot encoding

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Definitions:

Proprietors' Income

The income earned by the owners of unincorporated businesses.

Capitalist Income

The earnings from capital investment, including profits, interest, and dividends, attributed to owners in a capitalist economy.

Unionism

The principles, practices, or the system of forming and belonging to a labor union to protect and further the rights and interests of workers.

Normal Profit

The payment made by a firm to obtain and retain entrepreneurial ability; the minimum income that entrepreneurial ability must receive to induce entrepreneurs to provide their entrepreneurial ability to a firm; the level of accounting profit at which a firm generates an economic profit of zero after paying for entrepreneurial ability.