AI engineering glossary · Feature engineering data prep

What is Box-Cox transform?

Box-Cox transform: A power transform that finds the exponent lambda, by maximum likelihood, that makes strictly positive data look most normal. With lambda = 0 it becomes the natural log; otherwise y = (x^lambda - 1) / lambda. It cannot handle zero or negative values.

Level: advancedTopic: Feature engineering data prep

Box-Cox transform: an example

Fitting Box-Cox on positive delivery times might choose lambda near 0.2, close to a log transform, and reduce right skew.

Related terms

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Where you learn it

Box-Cox transform is part of the AI Engineering Program, which teaches it with notes, a hands-on lab and an exam. The first lesson is free.

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