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Walk through the full pipeline step-by-step, emphasizing reproducibility and stratification. After reporting AUC, discuss two concrete techniques to improve generalization, linking them to the bias-variance tradeoff and the specific context of retail data.
Pro tip: Mention that you would set a random seed and use a pipeline object (e.g., sklearn Pipeline) to prevent data leakage, and that you would compare the test AUC to a baseline (e.g., logistic regression) to contextualize performance.
Split the cleaned dataset into 80% train and 20% test using stratified sampling on the target to preserve class distribution. Set a random seed for reproducibility.
Create a reproducible pipeline that standardizes numeric features and one-hot encodes categorical features. Fit the pipeline on the training set only and apply it to the test set to avoid leakage.
Train a gradient-boosted tree model (e.g., XGBoost, LightGBM, or CatBoost) on the preprocessed training data. Use early stopping on a validation set to prevent overfitting.
Compute the AUC on the test set and report it. Also consider reporting confidence intervals or comparing to a baseline model to assess practical significance.
Describe two techniques: (1) regularization (e.g., increase L1/L2 penalty, reduce tree depth, lower learning rate with more trees) and (2) feature engineering or selection (e.g., add interaction terms, remove noisy features, or use target encoding for high-cardinality categoricals).
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