How to encode categorical variables for modeling?
                
                    UserBird                
                
                    Dataiker, Alpha Tester Posts: 535 Dataiker                
            
                        
            
                    Is it okay to use categorical variable directly or is it better to use one-hot encoding?                
                        
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            Answers
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            It's ok to use categorical variable directly. The model will automatically do the one-hot encoding. This is also called dummification.
You can chose in project "Settings" between one-hot encoding and "impact encoding". For text variable, there other options available: tf-idf, hashing, etc.