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THEORY:
What is Imputation?
Imputation is the process of replacing missing values (null, NaN, or NA) in a dataset with
estimated values. This helps maintain the integrity of the data for analysis and modeling.
1. Prevents Data Loss: Deleting rows with missing values can reduce sample size and
introduce bias.
2. Maintains Statistical Integrity: Missing values can distort averages, variances, and
distributions.
3. Enables Machine Learning Models: Many ML algorithms cannot handle missing values
and require complete datasets.
4. Improves Predictive Accuracy: Proper imputation reduces errors caused by missing data.
5. Handles Real-World Data Issues: Incomplete data is common in surveys, medical records,
and financial data.
2. Mean/Median Imputation
Concept: Replace missing values with the mean (for normal data) or median (for skewed data).
Advantages:
Quick and easy to apply.
Preserves overall distribution (for large datasets).
Disadvantages:
Reduces variability in data.
Distorts relationships between variables.
3. Mode Imputation
Concept: Replace missing values with the most frequent value (mode).
Advantages:
Works well for categorical data.
Simple and effective when missing values are random
Disadvantages:
Can introduce bias if the most frequent value dominates.
Less effective for continuous data.
Concept: Replace missing values with an arbitrary value (e.g., -999 or 9999).
Advantages:
Clearly distinguishes missing data from actual values.
Useful when missing values have a special meaning.
Disadvantages:
Can introduce outliers, affecting statistical analysis.
May distort relationships in data.
Concept: Replace missing values with a value at the extreme end (e.g., 1st or 99th percentile).
Advantages:
Preserves relationships without creating artificial values.
Useful for highly skewed data.
Disadvantages:
Can introduce extreme values that distort analysis.
Not suitable for normally distributed data.
Concept: Replace missing values with a randomly selected value from the available data.
Advantages:
Maintains variability in data.
Avoids artificial bias.
Disadvantages:
Adds randomness, making results inconsistent across runs.
Does not work well if missing values are systematic.
Concept: Replace missing values with the most frequent category in categorical data.
Advantages:
Useful for categorical variables with high frequency in one category.
Simple and effective when missing data is small.
Disadvantages:
Can overrepresent the most frequent category.
May not be ideal for datasets with balanced categories.
Concept: Introduce a new category labeled "Missing" for categorical variables with missing values.
Advantages:
Keeps all data intact.
Helps identify patterns in missing data.
Disadvantages:
Assumes missing values have a distinct meaning.
Can create artificial categories that may not be useful.
9. Regression Imputation
Concept: Predict missing values using a regression model based on other variables.
Advantages:
More accurate than simple imputation methods.
Preserves relationships between variables.
Disadvantages:
Computationally intensive.
Can introduce bias if the relationship is weak.
Conclusion :
Data imputation is a critical process in handling missing values, ensuring that datasets remain
complete and reliable for analysis. The choice of imputation technique depends on the nature of the
data, the proportion of missing values, and the desired balance between accuracy and computational
efficiency.
Simple methods like mean, median, and mode imputation are easy to apply but can distort
variability. More advanced approaches like random sampling, regression imputation, and end-
of-tail imputation help preserve data relationships but require careful implementation. In
categorical data, frequent category imputation or introducing a “missing” category can help
retain important information.
While deleting rows with missing values may seem like a straightforward approach, it is often not
recommended unless missing data is minimal and randomly distributed. In contrast, machine
learning-based imputation (e.g., regression or KNN) can improve accuracy but requires additional
computational resources.
Ultimately, there is no one-size-fits-all solution. The best imputation method depends on the dataset,
the extent of missing values, and the impact on analysis and modeling. Proper imputation enhances
data quality, reduces bias, and ensures meaningful statistical insights and predictive performance.
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