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If you want to predict the price of an apartment, which of the following ML techniques you may consider?

Question

If you want to predict the price of an apartment, which of the following ML techniques you may consider?

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Solution

When predicting the price of an apartment, you may consider the following Machine Learning (ML) techniques:

  1. Linear Regression: This is a basic and commonly used type of predictive analysis. The overall idea of regression is to examine two things: does a set of predictor variables do a good job in predicting an outcome (dependent) variable? Which variables in particular are significant predictors of the outcome variable, and in what way do they–indicated by the magnitude and sign of the beta estimates–impact the outcome variable?

  2. Decision Trees: Decision trees are a type of model used for both classification and regression. Trees answer sequential questions which send us down a certain route of the tree given the answer. The end point is a prediction for the target variable.

  3. Random Forest: This is a type of ensemble machine learning algorithm called Bootstrap Aggregation or bagging. It can be used for regression or classification tasks. The idea behind bagging is combining the results of multiple models (for instance, all decision trees) to get a generalized result.

  4. Gradient Boosting: This is another ensemble machine learning algorithm that can be used for regression problems. It produces a prediction model in the form of an ensemble of weak prediction models, typically decision trees.

  5. Support Vector Machines: Although it is primarily used for classification problems, it can be used for regression problems as well. The technique can be used for predicting a range of continuous outcomes (including house prices).

  6. Neural Networks: These are a set of algorithms, modeled loosely after the human brain, that are designed to recognize patterns. They interpret sensory data through a kind of machine perception, labeling or clustering raw input.

Remember, the choice of model will depend on the nature of your data and the specific requirements of your problem.

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