City (name): One-hot encoding

Type_year (type of home and year the home was built): Feature splitting

Size of the building (square feet or square meters): Standardized distribution

City (name): One-hot encoding

Why? The "City" is a categorical feature (non-numeric), so one-hot encoding is used to transform it into a numeric format. This encoding creates binary columns for each unique category (e.g., cities like "New York" or "Los Angeles"), which the model can interpret.

Type_year (type of home and year the home was built): Feature splitting

Why? "Type_year" combines two pieces of information into one column, which could confuse the model. Feature splitting separates this column into two distinct features: "Type of home" and "Year built," enabling the model to process each feature independently.

Size of the building (square feet or square meters): Standardized distribution

Why? Size is a continuous numerical variable, and standardization (scaling the feature to have a mean of 0 and a standard deviation of 1) ensures that the model treats it fairly compared to other features, avoiding bias from differences in feature scale.

By applying these feature engineering techniques, the ML engineer can ensure that the input data is correctly formatted and optimized for the model to make accurate predictions.