You have a dataset with numerous features, and you suspect that many of them are correlated. Using which technique can you both reduce the dimensionality and tackle multicollinearity?

  • Data Imputation
  • Decision Trees
  • Feature Scaling
  • Principal Component Analysis (PCA)
Principal Component Analysis (PCA) can reduce dimensionality by transforming correlated features into a smaller set of uncorrelated variables. It addresses multicollinearity by creating new axes (principal components) where the original variables are no longer correlated, thus improving the model's stability and interpretability.
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