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Understanding Regression Problems in Machine Learning

Understanding Regression Problems

Machine Learning problems can be broadly classified into Classification and Regression.

Classification

Classification predicts discrete categories or classes.

Examples:

  • Yes or No
  • Fraud or Not Fraud
  • Disease or No Disease

Regression

Regression predicts continuous numerical values.

Examples:

  • House prices
  • Temperature forecasts
  • Revenue predictions

In this project, our objective is to predict housing prices, which are numerical values rather than categories.

Therefore, House Price Prediction is a Regression problem.

Why Regression Is Used Here

The output variable, house price, can take any value within a range rather than belonging to fixed categories.

Examples:

  • $18,000
  • $24,500
  • $35,200
  • $52,000

Because the target variable is continuous, regression algorithms are the appropriate choice.