Which of the following is not a method to handle categorical variables for regression?

Creating embeddings for numerical features is not a method used specifically to handle categorical variables in regression. This technique typically involves transforming numerical or continuous variables into a lower-dimensional space, often used in scenarios with complex relationships or when dealing with high-dimensional data, such as in deep learning.

In contrast, handling categorical variables often involves methods like assigning numeric values to categories, one-hot encoding, and using dummy variables. Assigning numeric values translates categories into a numerical format, facilitating mathematical operations required for regression. One-hot encoding and dummy variables are techniques that help create binary (0/1) representations of categories, preventing the model from assuming a natural ordering among categorical levels that doesn’t exist.

These correct approaches ensure that categorical variables contribute meaningfully to the predictive power of regression models, while creating embeddings is a distinct technique not specifically aimed at categorical variables.