I saw on Coursera machine learning classes that is possible to normalize data in two ways:
data = (data - mean) / max(data) - min(data)
or you can use an Octave function called std(), it does the following:
data = (data - mean) / std(data)
Which normalization is better to normalize a matrix containing house size(20 m² to 1000 m²), number of rooms(2 to 20) and the house's prices(10000 to 15000000)? And why its is better? I'm using linear regression to predict a house price, with size and number of rooms as parameters. Although, then a try to plot it using plot function in Octave, but it gives an error saying that the values are too high. So, if I normalize my data using both approaches I can plot it. So, which is better and I? When I should use std() or the other approach?