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Can you describe the difference between L1 and L2 regularization techniques in regression analysis and why it's plausible to select one over the other?

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Interview question asked to Machine Learning Engineers interviewing at Andela, Autodesk, Postmates and other companies. Original question asked: Can you describe the difference between L1 and L2 regularization techniques in regression analysis and why it's plausible to select one over the other?.