arXiv · 2307.02071
A Comparison of Machine Learning Methods for Data with High-Cardinality Categorical Variables
Abstract
High-cardinality categorical variables are variables for which the number of different levels is large relative to the sample size of a data set, or in other words, there are few data points per level. Machine learning methods can have difficulties with high-cardinality variables. In this article, we empirically compare several versions of two of the most successful machine learning methods, tree-boosting and deep neural networks, and linear mixed effects models using multiple tabular data sets with high-cardinality categorical variables. We find that, first, machine learning models with random effects have higher prediction accuracy than their classical counterparts without random effects, and, second, tree-boosting with random effects outperforms deep neural networks with random effects.
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Fabio Sigrist. 2023-07-05. A Comparison of Machine Learning Methods for Data with High-Cardinality Categorical Variables. https://arxiv.org/abs/2307.02071
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