mlessentials/lab_guides/Lab_12.md

Lab 12. Feature Engineering

Overview

By the end of this lab, you will be able to merge multiple datasets together; bin categorical and numerical variables; perform aggregation on data; and manipulate dates using pandas.

This lab will introduce you to some of the key techniques for creating new variables on an existing dataset.

Merging Datasets

First, we need to import the Online Retail dataset into a pandas DataFrame:

import pandas as pd
file_url = 'https://github.com/fenago/'\
           'data-science/blob/'\
           'master/Lab12/Dataset/'\
           'Online%20Retail.xlsx?raw=true'
df = pd.read_excel(file_url)
df.head()

You should get the following output.

Let's focus on 2010 first:

uk_holidays_2010 = pd.read_csv\
                   ('https://date.nager.at/PublicHoliday/'\
                    'Country/GB/2010/CSV')

We can print its shape to see how many rows and columns it has:

uk_holidays_2010.shape

You should get the following output.

(13, 8)

We can see there were 13 public holidays in that year and there are 8 different columns.

Let's print the first five rows of this DataFrame:

uk_holidays_2010.head()

You should get the following output:

Caption: First five rows of the UK 2010 public holidays DataFrame

Now that we have the list of public holidays for 2010, let's extract the ones for 2011:

uk_holidays_2011 = pd.read_csv\
                   ('https://date.nager.at/PublicHoliday/'\
                    'Country/GB/2011/CSV')
uk_holidays_2011.shape

You should get the following output.

(15, 8)

There were 15 public holidays in 2011. Now we need to combine the records of these two DataFrames. We will use the .append() method from pandas and assign the results into a new DataFrame:

uk_holidays = uk_holidays_2010.append(uk_holidays_2011)

Let's check we have the right number of rows after appending the two DataFrames:

uk_holidays.shape

You should get the following output:

(28, 8)

We got 28 records, which corresponds with the total number of public holidays in 2010 and 2011.

In order to merge two DataFrames together, we need to have at least one common column between them. For example, the date 2010-12-01 08:26:00 will first be converted into a string and then we will keep only the first 10 characters, which will be 2010-12-01. We are going to save these results into a new column called InvoiceDay:

df['InvoiceDay'] = df['InvoiceDate'].astype(str)\
                                    .str.slice(stop=10)
df.head()

The output is as follows:

Caption: First five rows after creating InvoiceDay

The Left Join

Use the following code snippet:

df_left = pd.merge(df, uk_holidays, left_on='InvoiceDay', \
                   right_on='Date', how='left')
df_left.shape

You should get the following output:

(541909, 17)

We got the exact same number of rows as the original Online Retail DataFrame, which is expected for a left join. Let's have a look at the first five rows:

df_left.head()

You should get the following output:

Caption: First five rows of the left-merged DataFrame

The Right Join

Use the following code snippet:

df_right = df.merge(uk_holidays, left_on='InvoiceDay', \
                    right_on='Date', how='right')
df_right.shape

You should get the following output:

(9602, 17)

For instance, looking at the first rows of the merged DataFrame, we can see there were multiple purchases on January 4, 2011, so all of them have been matched with the corresponding public holiday. Have a look at the following code snippet:

df_right.head()

You should get the following output:

Caption: First five rows of the right-merged DataFrame

There are two other types of merging: inner and outer.

An inner join will only keep the rows that match between the two tables:

Caption: Venn diagram for inner join

You just need to specify the how = 'inner' parameter in the .merge() method.

These parameters are clubbed together as shown in the following code snippet:

df_inner = df.merge(uk_holidays, left_on='InvoiceDay', \
                    right_on='Date', how='inner')
df_inner.shape

You should get the following output:

(9579, 17)

We can see there are only 9,579 observations that happened during a public holiday in the UK.

The outer join will keep all rows from both tables (matched and unmatched), as shown in Figure 12.09:

Caption: Venn diagram for outer join

As you may have guessed, you just need to specify the how == 'outer' parameter in the .merge() method:

df_outer = df.merge(uk_holidays, left_on='InvoiceDay', \
                    right_on='Date', how='outer')
df_outer.shape

You should get the following output:

(541932, 17)

Exercise 12.01: Merging the ATO Dataset with the Postcode Data

In this exercise, we will merge the ATO dataset (28 columns) with the Postcode dataset (150 columns) to get a richer dataset with an increased number of columns.

The following steps will help you complete the exercise:

1. Open up a new Jupyter notebook.

2. Now, begin with the import of the pandas package:

   import pandas as pd
   

3. Assign the link to the ATO dataset to a variable called file_url:

   file_url = 'https://raw.githubusercontent.com/'\
              'fenago/data-science/'\
              'master/Lab12/Dataset/taxstats2015.csv'
   

4. Using the .read_csv() method from the pandas package, load the dataset into a new DataFrame called df:

   df = pd.read_csv(file_url)
   

5. Display the dimensions of this DataFrame using the .shape attribute:

   df.shape
   

   You should get the following output:

   (2473, 28)
   

   The ATO dataset contains 2471 rows and 28 columns.

6. Display the first five rows of the ATO DataFrame using the .head() method:

   df.head()
   

   You should get the following output:

Caption: First five rows of the ATO dataset

Both DataFrames have a column called `Postcode` containing
postcodes, so we will use it to merge them together.

Note

Postcode is the name used in Australia for zip code. It is an
identifier for postal areas.

We are interested in learning more about each of these postcodes.
Let\'s make sure they are all unique in this dataset.

7. Display the number of unique values for the Postcode variable using the .nunique() method:

   df['Postcode'].nunique()
   

   You should get the following output:

   2473
   

   There are 2473 unique values in this column and the DataFrame has 2473 rows, so we are sure the Postcode variable contains only unique values.

8. Now, assign the link to the second Postcode dataset to a variable called postcode_df:

   postcode_url = 'https://github.com/fenago/'\
                  'data-science/blob/'\
                  'master/Lab12/Dataset/'\
                  'taxstats2016individual06taxablestatusstate'\
                  'territorypostcodetaxableincome%20(2).xlsx?'\
                  'raw=true'
   

9. Load the second Postcode dataset into a new DataFrame called postcode_df using the .read_excel() method.

   We will only load the Individuals Table 6B sheet as this is where the data is located so we need to provide this name to the sheet_name parameter. Also, the header row (containing the name of the variables) in this spreadsheet is located on the third row so we need to specify it to the header parameter.

   Note

   Don't forget the index starts with 0 in Python.

   Have a look at the following code snippet:

   postcode_df = pd.read_excel(postcode_url, \
                               sheet_name='Individuals Table 6B', \
                               header=2)
   

10. Print the dimensions of postcode_df using the .shape attribute:

    postcode_df.shape
    

    You should get the following output:

    (2567, 150)
    

    This DataFrame contains 2567 rows for 150 columns. By merging it with the ATO dataset, we will get additional information for each postcode.

11. Print the first five rows of postcode_df using the .head() method:

    postcode_df.head()
    

    You should get the following output:

Caption: First five rows of the Postcode dataset

We can see that the second column contains the postcode value, and
this is the one we will use to merge on with the ATO dataset. Let\'s
check if they are unique.

12. Print the number of unique values in this column using the .nunique() method as shown in the following code snippet:

    postcode_df['Postcode'].nunique()
    

    You should get the following output:

    2567
    

    There are 2567 unique values, and this corresponds exactly to the number of rows of this DataFrame, so we're absolutely sure this column contains unique values. This also means that after merging the two tables, there will be only one-to-one matches. We won't have a case where we get multiple rows from one of the datasets matching with only one row of the other one. For instance, postcode 2029 from the ATO DataFrame will have exactly one match in the second Postcode DataFrame.

13. Perform a left join on the two DataFrames using the .merge() method and save the results into a new DataFrame called merged_df. Specify the how='left' and on='Postcode' parameters:

    merged_df = pd.merge(df, postcode_df, \
                         how='left', on='Postcode')
    

14. Print the dimensions of the new merged DataFrame using the .shape attribute:

    merged_df.shape
    

    You should get the following output:

    (2473, 177)
    

15. Print the total number of missing values from the 'State/Territory1' column by combining the .isna() and .sum() methods:

    merged_df['State/ Territory1'].isna().sum()
    

    You should get the following output:

    4
    

    There are four postcodes from the ATO dataset that didn't match the Postcode code.

    Let's see which ones they are.

16. Print the missing postcodes using the .iloc() method, as shown in the following code snippet:

    merged_df.loc[merged_df['State/ Territory1'].isna(), \
                  'Postcode']
    

    You should get the following output:

Caption: List of unmatched postcodes

The missing postcodes from the Postcode dataset are 3010, 4462, 6068, and 6758. In a real project, you would have to get in touch with your stakeholders or the data team to see if you are able to get this data.

We have successfully merged the two datasets of interest and have expanded the number of features from 28 to 177. We now have a much richer dataset and will be able to perform a more detailed analysis of it.

In the next topic, you will be introduced to the binning variables.

Binning Variables

As mentioned earlier, feature engineering is not only about getting information not present in a dataset. Quite often, you will have to create new features from existing ones. One example of this is consolidating values from an existing column to a new list of values.

For instance, you may have a very high number of unique values for some of the categorical columns in your dataset, let's say over 1,000 values for each variable. This is actually quite a lot of information that will require extra computation power for an algorithm to process and learn the patterns from. This can have a significant impact on the project cost if you are using cloud computing services or on the delivery time of the project.

One possible solution is to not use these columns and drop them, but in that case, you may lose some very important and critical information for the business. Another solution is to create a more consolidated version of these columns by reducing the number of unique values to a smaller number, let's say 100. This would drastically speed up the training process for the algorithm without losing too much information. This kind of transformation is called binning and, traditionally, it refers to numerical variables, but the same logic can be applied to categorical variables as well.

Let's see how we can achieve this on the Online Retail dataset. First, we need to load the data:

import pandas as pd
file_url = 'https://github.com/fenago/'\
           'data-science/blob/'\
           'master/Lab12/Dataset/'\
           'Online%20Retail.xlsx?raw=true'
df = pd.read_excel(file_url)

In Lab 10, Analyzing a Dataset we learned that the Country column contains 38 different unique values:

df['Country'].unique()

You should get the following output:

Caption: List of unique values for the Country column

We are going to group some of the countries together into regions such as Asia, the Middle East, and America. We will leave the European countries as is.

First, let's create a new column called Country_bin by copying the Country column:

df['Country_bin'] = df['Country']

Then, we are going to create a list called asian_countries containing the name of Asian countries from the list of unique values for the Country column:

asian_countries = ['Japan', 'Hong Kong', 'Singapore']

And finally, using the .loc() and .isin() methods from pandas, we are going to change the value of Country_bin to Asia for all of the countries that are present in the asian_countries list:

df.loc[df['Country'].isin(asian_countries), \
       'Country_bin'] = 'Asia'

Now, if we print the list of unique values for this new column, we will see the three Asian countries (Japan, Hong Kong, and Singapore) have been replaced by the value Asia:

df['Country_bin'].unique()

You should get the following output:

Caption: List of unique values for the Country_bin column after binning Asian countries

Let's perform the same process for Middle Eastern countries:

m_east_countries = ['Israel', 'Bahrain', 'Lebanon', \
                    'United Arab Emirates', 'Saudi Arabia']
df.loc[df['Country'].isin(m_east_countries), \
       'Country_bin'] = 'Middle East'
df['Country_bin'].unique()

You should get the following output:

Finally, let's group all countries from North and South America together:

american_countries = ['Canada', 'Brazil', 'USA']
df.loc[df['Country'].isin(american_countries), \
       'Country_bin'] = 'America'
df['Country_bin'].unique()

You should get the following output:

Caption: List of unique values for the Country_bin column after binning countries from North and South America

df['Country_bin'].nunique()

You should get the following output:

30

Exercise 12.02: Binning the YearBuilt Variable from the AMES Housing Dataset

In this exercise, we will create a new feature by binning an existing numerical column in order to reduce the number of unique values from 112 to 15.

Note

The dataset we will be using in this exercise is the Ames Housing dataset. This dataset contains the list of residential home sales in the city of Ames, Iowa between 2010 and 2016.

1. Open up a new Jupyter notebook.

2. Import the pandas and altair packages:

   import pandas as pd
   import altair as alt
   

3. Assign the link to the dataset to a variable called file_url:

   file_url = 'https://raw.githubusercontent.com/'\
              'fenago/data-science/'\
              'master/Lab12/Dataset/ames_iowa_housing.csv'
   

4. Using the .read_csv() method from the pandas package, load the dataset into a new DataFrame called df:

   df = pd.read_csv(file_url)
   

5. Display the first five rows using the .head() method:

   df.head()
   

   You should get the following output:

Caption: First five rows of the AMES housing DataFrame

6. Display the number of unique values on the column using .nunique():

   df['YearBuilt'].nunique()
   

   You should get the following output:

   112
   

   There are 112 different or unique values in the YearBuilt column:

7. Print a scatter plot using altair to visualize the number of records built per year. Specify YearBuilt:O as the x-axis and count() as the y-axis in the .encode() method:

   alt.Chart(df).mark_circle().encode(alt.X('YearBuilt:O'),\
                                      y='count()')
   

   You should get the following output:

There weren\'t many properties sold in some of the years. So, you
can group them by decades (groups of 10 years).

8. Create a list called year_built containing all the unique values in the YearBuilt column:

   year_built = df['YearBuilt'].unique()
   

9. Create another list that will compute the decade for each year in year_built. Use list comprehension to loop through each year and apply the following formula: year - (year % 10).

   For example, this formula applied to the year 2015 will give 2015 - (2015 % 10), which is 2015 -- 5 equals 2010.

   Note

   % corresponds to the modulo operator and will return the last digit of each year.

   Have a look at the following code snippet:

   decade_list = [year - (year % 10) for year in year_built]
   

10. Create a sorted list of unique values from decade_list and save the result into a new variable called decade_built. To do so, transform decade_list into a set (this will exclude all duplicates) and then use the sorted() function as shown in the following code snippet:

    decade_built = sorted(set(decade_list))
    

11. Print the values of decade_built:

    decade_built
    

    You should get the following output:

Caption: List of decades

Now we have the list of decades we are going to bin the
`YearBuilt` column with.

12. Create a new column on the df DataFrame called DecadeBuilt that will bin each value from YearBuilt into a decade. You will use the .cut() method from pandas and specify the bins=decade_built parameter:

    df['DecadeBuilt'] = pd.cut(df['YearBuilt'], \
                               bins=decade_built)
    

13. Print the first five rows of the DataFrame but only for the 'YearBuilt' and 'DecadeBuilt' columns:

    df[['YearBuilt', 'DecadeBuilt']].head()
    

    You should get the following output:

Manipulating Dates

In Lab 10, Analyzing a Dataset you were introduced to the concept of data types in pandas. At that time, we mainly focused on numerical variables and categorical ones but there is another important one: datetime. Let's have a look again at the type of each column from the Online Retail dataset:

import pandas as pd
file_url = 'https://github.com/fenago/'\
           'data-science/blob/'\
           'master/Lab12/Dataset/'\
           'Online%20Retail.xlsx?raw=true'
df = pd.read_excel(file_url)
df.dtypes

You should get the following output:

Caption: Data types for the variables in the Online Retail dataset

We can see that pandas automatically detected that InvoiceDate is of type datetime. But for some other datasets, it may not recognize dates properly. In this case, you will have to manually convert them using the .to_datetime() method:

df['InvoiceDate'] = pd.to_datetime(df['InvoiceDate'])

Once the column is converted to datetime, pandas provides a lot of attributes and methods for extracting time-related information. For instance, if you want to get the year of a date, you use the .dt.year attribute:

df['InvoiceDate'].dt.year

You should get the following output:

Caption: Extracted year for each row for the InvoiceDate column

As you may have guessed, there are attributes for extracting the month and day of a date: .dt.month and .dt.day respectively. You can get the day of the week from a date using the .dt.dayofweek attribute:

df['InvoiceDate'].dt.dayofweek

You should get the following output.

Caption: Extracted day of the week for each row for the InvoiceDate column

With datetime columns, you can also perform some mathematical operations. We can, for instance, add 3 days to each date by using pandas time-series offset object, pd.tseries.offsets.Day(3):

df['InvoiceDate'] + pd.tseries.offsets.Day(3)

You should get the following output:

Caption: InvoiceDate column offset by three days

You can also offset days by business days using pd.tseries.offsets.BusinessDay(). For instance, if we want to get the previous business days, we do:

df['InvoiceDate'] + pd.tseries.offsets.BusinessDay(-1)

You should get the following output:

Caption: InvoiceDate column offset by -1 business day

Another interesting date manipulation operation is to apply a specific time-frequency using pd.Timedelta(). For instance, if you want to get the first day of the month from a date, you do:

df['InvoiceDate'] + pd.Timedelta(1, unit='MS')

You should get the following output:

Caption: InvoiceDate column transformed to the start of the month

As you have seen in this section, the pandas package provides a lot of different APIs for manipulating dates. You have learned how to use a few of the most popular ones. You can now explore the other ones on your own.

Exercise 12.03: Date Manipulation on Financial Services Consumer Complaints

In this exercise, we will learn how to extract time-related information from two existing date columns using pandas in order to create six new columns:

Note

The dataset we will be using in this exercise is the Financial Services Customer Complaints dataset

1. Open up a new Jupyter notebook.

2. Import the pandas package:

   import pandas as pd
   

3. Assign the link to the dataset to a variable called file_url:

   file_url = 'https://raw.githubusercontent.com/'\
              'fenago/data-science/'\
              'master/Lab12/Dataset/Consumer_Complaints.csv'
   

4. Use the .read_csv() method from the pandas package and load the dataset into a new DataFrame called df:

   df = pd.read_csv(file_url)
   

5. Display the first five rows using the .head() method:

   df.head()
   

   You should get the following output:

Caption: First five rows of the Customer Complaint DataFrame

6. Print out the data types for each column using the .dtypes attribute:

   df.dtypes
   

   You should get the following output:

Caption: Data types for the Customer Complaint DataFrame

The `Date received` and `Date sent to company`
columns haven\'t been recognized as datetime, so we need to manually
convert them.

7. Convert the Date received and Date sent to company columns to datetime using the pd.to_datetime() method:

   df['Date received'] = pd.to_datetime(df['Date received'])
   df['Date sent to company'] = pd.to_datetime\
                                (df['Date sent to company'])
   

8. Print out the data types for each column using the .dtypes attribute:

   df.dtypes
   

   You should get the following output:

Caption: Data types for the Customer Complaint DataFrame after
conversion

Now these two columns have the right data types. Now let\'s create
some new features from these two dates.

9. Create a new column called YearReceived, which will contain the year of each date from the Date Received column using the .dt.year attribute:

   df['YearReceived'] = df['Date received'].dt.year
   

10. Create a new column called MonthReceived, which will contain the month of each date using the .dt.month attribute:

    df['MonthReceived'] = df['Date received'].dt.month
    

11. Create a new column called DayReceived, which will contain the day of the month for each date using the .dt.day attribute:

    df['DomReceived'] = df['Date received'].dt.day
    

12. Create a new column called DowReceived, which will contain the day of the week for each date using the .dt.dayofweek attribute:

    df['DowReceived'] = df['Date received'].dt.dayofweek
    

13. Display the first five rows using the .head() method:

    df.head()
    

    You should get the following output:

Caption: First five rows of the Customer Complaint DataFrame
after creating four new features

We can see we have successfully created four new features:
`YearReceived`, `MonthReceived`,
`DayReceived`, and `DowReceived`. Now let\'s
create another that will indicate whether the date was during a
weekend or not.

14. Create a new column called IsWeekendReceived, which will contain binary values indicating whether the DowReceived column is over or equal to 5 (0 corresponds to Monday, 5 and 6 correspond to Saturday and Sunday respectively):

    df['IsWeekendReceived'] = df['DowReceived'] >= 5
    

15. Display the first 5 rows using the .head() method:

    df.head()
    

    You should get the following output:

Caption: First five rows of the Customer Complaint DataFrame
after creating the weekend feature

We have created a new feature stating whether each complaint was
received during a weekend or not. Now we will feature engineer a new
column with the numbers of days between
`Date sent to company` and `Date received`.

16. Create a new column called RoutingDays, which will contain the difference between Date sent to company and Date received:

    df['RoutingDays'] = df['Date sent to company'] \
                        - df['Date received']
    

17. Print out the data type of the new 'RoutingDays' column using the .dtype attribute:

    df['RoutingDays'].dtype
    

    You should get the following output:

Caption: Data type of the RoutingDays column

The result of subtracting two datetime columns is a new datetime
column (`dtype('<M8[ns]'`), which is a specific datetime
type for the `numpy` package). We need to convert this
data type into an `int` to get the number of days between
these two days.

18. Transform the RoutingDays column using the .dt.days attribute:

    df['RoutingDays'] = df['RoutingDays'].dt.days
    

19. Display the first five rows using the .head() method:

    df.head()
    

    You should get the following output:

Caption: First five rows of the Customer Complaint DataFrame after creating RoutingDays

Performing Data Aggregation

Let's see how to do it on the Online Retail dataset. First, we need to import the data:

import pandas as pd
file_url = 'https://github.com/fenago/'\
           'data-science/blob/'\
           'master/Lab12/Dataset/'\
           'Online%20Retail.xlsx?raw=true'
df = pd.read_excel(file_url)

Let's calculate the total quantity of items sold for each country. We will specify the Country column as the grouping column:

df.groupby('Country').agg({'Quantity': 'sum'})

You should get the following output:

Caption: Sum of Quantity per Country (truncated)

This result gives the total volume of items sold for each country. We can see that Australia has almost sold four times more items than Belgium. This level of information may be too high-level and we may want a bit more granular detail. Let's perform the same aggregation but this time we will group on two columns: Country and StockCode. We just need to provide the names of these columns as a list to the .groupby() method:

df.groupby(['Country', 'StockCode']).agg({'Quantity': 'sum'})

You should get the following output:

Caption: Sum of Quantity per Country and StockCode

We can add one more layer of information and get the number of items sold for each country, the product, and the date. To do so, we first need to create a new feature that will extract the date component of InvoiceDate (we just learned how to do this in the previous section):

df['Invoice_Date'] = df['InvoiceDate'].dt.date

Then, we can add this new column in the .groupby() method:

df.groupby(['Country', 'StockCode', \
            'Invoice_Date']).agg({'Quantity': 'sum'})

You should get the following output:

Caption: Sum of Quantity per Country, StockCode, and Invoice_Date

We can now merge this additional information back into the original DataFrame. But before that, there is an additional data transformation step required: reset the column index. The pandas package creates a multi-level index after data aggregation by default. You can think of it as though the column names were stored in multiple rows instead of one only. To change it back to a single level, you need to call the .reset_index() method:

df_agg = df.groupby(['Country', 'StockCode', 'Invoice_Date'])\
           .agg({'Quantity': 'sum'}).reset_index()
df_agg.head()

You should get the following output:

Caption: DataFrame containing data aggregation information

Now we can merge this new DataFrame into the original one using the .merge() method we saw earlier in this lab:

df_merged = pd.merge(df, df_agg, how='left', \
                     on = ['Country', 'StockCode', \
                           'Invoice_Date'])
df_merged

You should get the following output:

Caption: Merged DataFrame (truncated)

We can see there are two columns called Quantity_x and Quantity_y instead of Quantity.

The reason is that, after merging, there were two different columns with the exact same name (Quantity), so by default, pandas added a suffix to differentiate them.

We can fix this situation either by replacing the name of one of those two columns before merging or we can replace both of them after merging. To replace column names, we can use the .rename() method from pandas by providing a dictionary with the old name as the key and the new name as the value, such as {'old_name': 'new_name'}.

Let's replace the column names after merging with Quantity and DailyQuantity:

df_merged.rename(columns={"Quantity_x": "Quantity", \
                          "Quantity_y": "DailyQuantity"}, \
                 inplace=True)
df_merged

You should get the following output:

Caption: Renamed DataFrame (truncated)

Now we can create a new feature that will calculate the ratio between the items sold with the daily total quantity of sold items in the corresponding country:

df_merged['QuantityRatio'] = df_merged['Quantity'] \
                             / df_merged['DailyQuantity']
df_merged

You should get the following output:

Caption: Final DataFrame with new QuantityRatio feature

Exercise 12.04: Feature Engineering Using Data Aggregation on the AMES Housing Dataset

In this exercise, we will create new features using data aggregation. First, we'll calculate the maximum SalePrice and LotArea for each neighborhood and by YrSold. Then, we will add this information back to the dataset, and finally, we will calculate the ratio of each property sold with these two maximum values:

Note

The dataset we will be using in this exercise is the Ames Housing dataset

1. Open up a new Jupyter notebook.

2. Import the pandas and altair packages:

   import pandas as pd
   

3. Assign the link to the dataset to a variable called file_url:

   file_url = 'https://raw.githubusercontent.com/'\
              'fenago/data-science/'\
              'master/Lab12/Dataset/ames_iowa_housing.csv'
   

4. Using the .read_csv() method from the pandas package, load the dataset into a new DataFrame called df:

   df = pd.read_csv(file_url)
   

5. Perform data aggregation to find the maximum SalePrice for each Neighborhood and the YrSold using the .groupby.agg() method and save the results in a new DataFrame called df_agg:

   df_agg = df.groupby(['Neighborhood', 'YrSold'])\
              .agg({'SalePrice': 'max'}).reset_index()
   

6. Rename the df_agg columns to Neighborhood, YrSold, and SalePriceMax:

   df_agg.columns = ['Neighborhood', 'YrSold', 'SalePriceMax']
   

7. Print out the first five rows of df_agg:

   df_agg.head()
   

   You should get the following output:

Caption: First five rows of the aggregated DataFrame

8. Merge the original DataFrame, df, to df_agg using a left join (how='left') on the Neighborhood and YrSold columns using the merge() method and save the results into a new DataFrame called df_new:

   df_new = pd.merge(df, df_agg, how='left', \
                     on=['Neighborhood', 'YrSold'])
   

9. Print out the first five rows of df_new:

   df_new.head()
   

   You should get the following output:

Caption: First five rows of df\_new

Note that we are displaying the last eight columns of the output.

10. Create a new column called SalePriceRatio by dividing SalePrice by SalePriceMax:

    df_new['SalePriceRatio'] = df_new['SalePrice'] \
                               / df_new['SalePriceMax']
    

11. Print out the first five rows of df_new:

    df_new.head()
    

    You should get the following output:

Caption: First five rows of df\_new after feature engineering

Note that we are displaying the last eight columns of the output.

12. Perform data aggregation to find the maximum LotArea for each Neighborhood and YrSold using the .groupby.agg() method and save the results in a new DataFrame called df_agg2:

    df_agg2 = df.groupby(['Neighborhood', 'YrSold'])\
                .agg({'LotArea': 'max'}).reset_index()
    

13. Rename the column of df_agg2 to Neighborhood, YrSold, and LotAreaMax and print out the first five columns:

    df_agg2.columns = ['Neighborhood', 'YrSold', 'LotAreaMax']
    df_agg2.head()
    

    You should get the following output:

Caption: First five rows of the aggregated DataFrame

14. Merge the original DataFrame, df, to df_agg2 using a left join (how='left') on the Neighborhood and YrSold columns using the merge() method and save the results into a new DataFrame called df_final:

    df_final = pd.merge(df_new, df_agg2, how='left', \
                        on=['Neighborhood', 'YrSold'])
    

15. Create a new column called LotAreaRatio by dividing LotArea by LotAreaMax:

    df_final['LotAreaRatio'] = df_final['LotArea'] \
                               / df_final['LotAreaMax']
    

16. Print out the first five rows of df_final for the following columns: Id, Neighborhood, YrSold, SalePrice, SalePriceMax, SalePriceRatio, LotArea, LotAreaMax, LotAreaRatio:

    df_final[['Id', 'Neighborhood', 'YrSold', 'SalePrice', \
              'SalePriceMax', 'SalePriceRatio', 'LotArea', \
              'LotAreaMax', 'LotAreaRatio']].head()
    

    You should get the following output:

Activity 12.01: Feature Engineering on a Financial Dataset

You are working for a major bank in the Czech Republic and you have been tasked to analyze the transactions of existing customers. The data team has extracted all the tables from their database they think will be useful for you to analyze the dataset. You will need to consolidate the data from those tables into a single DataFrame and create new features in order to get an enriched dataset from which you will be able to perform an in-depth analysis of customers' banking transactions.

You will be using only the following four tables:

• account: The characteristics of a customer's bank account for a given branch

• client: Personal information related to the bank's customers

• disp: A table that links an account to a customer

• trans: A list of all historical transactions by account

The following steps will help you complete this activity:

1. Download and load the different tables from this dataset into Python.

2. Analyze each table with the .shape and .head() methods.

3. Find the common/similar column(s) between tables that will be used for merging based on the analysis from Step 2.

4. There should be four common tables. Merge the four tables together using pd.merge().

5. Rename the column names after merging with .rename().

6. Check there is no duplication after merging with .duplicated() and .sum().

7. Transform the data type for date columns using .to_datetime().

8. Create two separate features from birth_number to get the date of birth and sex for each customer.

   Note

   This is the rule used for coding the data related to birthday and sex in this column: the number is in the YYMMDD format for men, the number is in the YYMM+50DD format for women, where YYMMDD is the date of birth.

9. Fix data quality issues with .isna().

10. Create a new feature that will calculate customers' ages when they opened an account using date operations

Expected output:

Caption: Expected output with the merged rows

Summary

We first learned how to analyze a dataset and get a very good understanding of its data using data summarization and data visualization. This is very useful for finding out what the limitations of a dataset are and identifying data quality issues. We saw how to handle and fix some of the most frequent issues (duplicate rows, type conversion, value replacement, and missing values) using pandas' APIs. Finally, we went through several feature engineering techniques.