I am reading a presentation and it recommends not using leave one out encoding, but it is okay with one hot encoding. I thought they both were the same. Can anyone describe what the differences between them are?
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They are probably using "leave one out encoding" to refer to Owen Zhang's strategy.
From here
The encoded column is not a conventional dummy variable, but instead is the mean response over all rows for this categorical level, excluding the row itself. This gives you the advantage of having a one-column representation of the categorical while avoiding direct response leakage
This picture expresses the idea well.
