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Feature engineering and preprocessing · insight-0113

Add a missing indicator when the fact of missingness may carry signal

Evidence type
documented fact
Difficulty
medium
Roles
Data scientist, ML engineer
Industries
aviation, healthcare

Summary: situation, action, reason, boundary

  1. Situation

    A feature is missing more often for one segment or outcome, such as revenue missing more on intl-long flights in the synthetic raw table.

  2. Action

    Impute and add a binary missing flag (add_indicator=True) inside the pipeline, then check with cross-validation whether the flag earns its place.

  3. Reason

    When missingness depends on unobserved or outcome-related factors, the flag lets the model learn a separate effect for missing rows.

  4. Boundary

    Prediction tasks with MAR or MNAR missingness and stable collection processes.

Symptom or risk

Imputing the median erases the pattern; the model cannot distinguish a true median value from a missing one.

Exceptions

For causal or inferential estimates, indicator methods can bias coefficients; use multiple imputation or a missingness model instead.

Trade-offs

Flags add columns and can encode process artefacts that change when data collection is fixed.

Pitfalls

A flag that reflects a process timing (field filled only after the outcome) is leakage, not signal.

Lessons and concepts

Claims and their sources