A positive transaction-amount feature has a long right tail. The team considers a log transformation, but some records contain zero. What should be checked before applying it?

Published
  1. Drop all evaluation data because the distribution is skewed
  2. Apply an ordinary logarithm to zero without any handling
  3. Treat the amounts as unique customer identifiers
  4. Choose a transformation defined for the observed values and assess its modeling effect

Comments — 0