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MLS-C01 Exploratory Data Analysis Practice Question

Which THREE techniques are commonly used for feature engineering in exploratory data analysis? (Select THREE.)

⚠ Common exam trap

The MLS-C01 exam often tests the distinction between feature engineering (creating new features from existing data) and dimensionality reduction (PCA) or encoding (one-hot encoding), leading candidates to mistakenly select PCA as a feature engineering technique when it is actually a preprocessing step for reducing feature space.

Answer choices

Why each option matters

Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.

Correct answer & explanation

Extracting date/time components like day of week or hour.

Extracting date/time components such as day of week, hour, or month from a timestamp is a standard feature engineering technique. It transforms a single datetime column into multiple categorical or cyclical features that can reveal temporal patterns like weekly seasonality or peak hours, which are often critical for time-series models.

Answer analysis

Option-by-option breakdown

For each option: why learners choose it and why it is or isn't the right answer here.

  • Extracting date/time components like day of week or hour.

    Why this is correct

    Temporal features often reveal patterns.

  • Using principal component analysis (PCA) to create new features.

    Why it's wrong here

    PCA reduces dimensionality, but is not typically considered feature engineering; it transforms features.

  • Applying one-hot encoding to numerical features.

    Why it's wrong here

    One-hot encoding is for categorical features.

  • Creating interaction features between variables.

    Why this is correct

    Interaction features capture combined effects.

  • Binning continuous variables into discrete intervals.

    Why this is correct

    Binning can capture non-linear relationships.

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