AI engineering glossary · Feature engineering data prep

What is rare category grouping?

Rare category grouping: Merging infrequent category values into a single 'Other' bucket before encoding. It reduces column count, stops the model overfitting to tiny groups and prepares for unseen categories at prediction time.

Level: beginnerTopic: Feature engineering data prep

Rare category grouping: an example

Of 300 car brands in a dataset, all brands with under 50 rows are relabelled 'Other', leaving about 20 distinct values.

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Where you learn it

Rare category grouping 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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