Imbalanced datasets, where one class significantly outnumbers others, pose challenges for machine learning models that can become biased toward majority classes. Three key strategies help address this issue: inverse frequency-dependent weighting using scikit-learn's class_weight='balanced' parameter, undersampling majority classes with Pandas to match minority class sizes, and oversampling minority classes through random replication. Each approach has trade-offs - weighted models maintain all data but may still struggle with severe imbalance, undersampling reduces dataset size but eliminates bias, and oversampling preserves data volume but risks overfitting through duplicates.
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