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House Price Prediction Project Report

The document discusses predicting house prices using machine learning techniques. It describes the business problem of accurately predicting house values. Various machine learning algorithms like linear regression, lasso, ridge and random forest regression could be used. Feature engineering and data preprocessing steps like handling missing values and outliers are also covered.
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0% found this document useful (0 votes)
64 views36 pages

House Price Prediction Project Report

The document discusses predicting house prices using machine learning techniques. It describes the business problem of accurately predicting house values. Various machine learning algorithms like linear regression, lasso, ridge and random forest regression could be used. Feature engineering and data preprocessing steps like handling missing values and outliers are also covered.
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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House Price Prediction Using Machine Learning

Techniques

Submitted by:
HINAL SETH
ACKNOWLEDGMENT

I would like to thank for Flip Robo Technologies for giving me this
golden opportunity to work on this project.
I also would to thank my mentor, Ms. Swati Mahaseth for her
guidance, suggestions, and patience toward my project.
In addition, I would like to thank my family for their supports.
Lastly, I would like to thank The Almighty for making me whoever I
am today.
INTRODUCTION

• Business Problem Framing


The connection between house costs and the economy is a
significant propelling factor at foreseeing house costs. There is no
precise proportion of house costs. A property's estimation is
significant in land exchanges. House costs patterns are not just the
worries for purchasers and venders, but they additionally
demonstrate the current monetary circumstances. In this way, it is
critical to anticipate the house costs without predisposition to assist
both purchasers and venders with settling on their choices, i.e.,
without bias to help both buyers and sellers make their decisions.
There are different AI/Machine Learning calculations to anticipate
the house price.
I am expected to assemble a model involving Machine Learning to
foresee the genuine worth of the planned properties and choose
whether to contribute in them or not.
For this I also want to know :
i) Which variables are important to predict the price of the
house ?
ii) How do these variables describe the price of the house ?

Target Variable:
Selling Price of the house.

• Conceptual Background of the Domain Problem


Houses are one of the necessary need of each and every person
around the globe and therefore housing and real estate market is
one of the markets which is one of the major contributors in the
world’s economy. It is a very large market and there are various
companies working in the domain. Data science comes as a very
important tool to solve problems in the domain to help the
companies increase their overall revenue, profits, improving their
marketing strategies and focusing on changing trends in house sales
and purchases. Predictive modelling, Market mix modelling,
recommendation systems are some of the machine learning
techniques used for achieving the business goals for housing
companies.
In this study we can have two clients :
i) Client House Buyer : This client needs to observe their next
dream home with a sensible sticker price. They have their
areas of interest prepared. Presently, they need to know
whether the house cost matches the house estimation. With
this review, they can comprehend which highlights (ex.
Number of restrooms, area, and so forth) impact the last cost
of the house. Assuming everything matches, they can
guarantee that they are getting a fair cost.

ii) Client House Seller : Consider the normal house-flipper. This


client needs to exploit the elements that impact a house
value the most. They commonly need to purchase a house at
a low cost and contribute on the highlights that will give the
best yield. For instance, purchasing a house at a decent area
yet little area. The client will contribute on making rooms at a
little expense to get an enormous return.

• Review of Literature
House is one of human existence's most fundamental
requirements, alongside other key necessities like food, water, and
significantly more. Interest for houses developed quickly
throughout the years as individuals' expectations for everyday
comforts gotten to the next level. While there are individuals who
make their home as a venture and property, yet the vast majority
all over the planet are purchasing a house as their asylum/shelter or
as their business.
Real estate markets emphatically affect a nation's money, which is a
significant public economy scale. Mortgage holders will buy
merchandise like furnishings and family hardware for their home,
and homebuilders or workers for hire will buy unrefined substance
to construct houses to fulfill house interest, which means that the
financial wave impact made by the new house supply. Other than
that, purchasers have cash-flow to make an enormous speculation,
and the development business is in great condition should be
visible through a nation's significant degree of house supply.
Housing prices are an important reflection of the economy, and
housing price ranges are of great interest for both buyers and
sellers. In this project. house prices will be predicted given
explanatory variables that cover many aspects of residential
houses. As continuous house prices, they will be predicted with
various regression techniques including Linear Regression, Ridge,
Elastic Net, SGD Regressor, Decision Tree regression, and
Random Forest regression, etc.
The data contains 1460 entries each having 81 variables, hence we
may also use PCA for dimension reduction.

• Motivation for the Problem Undertaken


The benefit of this study that we can have two clients, Buyer and
Seller.

i) Objective: To build a model to effectively predict the house


price.
There are many advantages that home purchasers, property
financial backers, and house manufacturers can harvest from
the house-value model. This model will give a great deal of
data and information to home purchasers, property financial
backers and house manufacturers, for example, the valuation
of house costs in the current market, which will assist them
with deciding house costs. In the mean time, this model can
assist possible purchasers with choosing the attributes of a
house they need as indicated by their financial plan. Past
investigations zeroed in on breaking down the characteristics
that influence house cost and anticipating house cost in light
of the model of AI independently. Be that as it may, this
article consolidates such a both anticipating house cost and
characteristics together.

ii) Motivation: House is significantly established in the


monetary, monetary, and political construction of every
country. All things considered, announced that the vacillation
of house costs has forever been an issue for house
proprietors, structures and land, other than expressed that
house has become unreasonably expensive as there is
significant value development in a few nations in the lodging
area. Inhabitants' personal satisfaction as well as public
economy relies upon the potential house cost increment.
Eventually, this issue will influence financial backers who are
making their home as a speculation.
An increment in house request happens every year, in a
roundabout way causing house cost expands each year. The
issue emerges when there are various factors, for example,
area and property request that might impact the house value,
along these lines most partners including purchasers and
designers, house manufacturers and the land business might
want to know the specific ascribes or the precise variables
affecting the house cost to assist financial backers with simply
deciding and assist with lodging developers set the house
cost.
Analytical Problem Framing
• Mathematical/ Analytical Modeling of the Problem
The data contains 1460 entries each having 81 variables, hence we
may use PCA for dimension reduction.
Since the target is continuous variable, we will use regression
algorithms like Linear Regression, Lasso, Ridge, Elastic Net,
KNeighbours Regression, Search Vector Machine, SGD Regression,
Decision Tree, Random Forest, Gradient Boosting Regression, etc.

• Data Sources and their formats


Training Dataset: The preparation information comprises of 1,168
instances of houses with 81 highlights portraying each part of the
house. We are given sale prices (labels) for each house. The
preparation information is what we will use to "instruct" our
models.
Testing Dataset: The test informational collection comprises of 292
models with similar number of highlights as the preparation
information. Our test informational collection prohibits the deal
cost since this is the thing we are attempting to anticipate. When
our models have been constructed we will run the best one on the
test dataset.

• Data Preprocessing Done


Generally speaking, machine learning projects follow the same
process. Data ingestion, data cleaning, exploratory data analysis,
feature engineering and finally machine learning.
I started by removing duplicates from the data, checked for missing
or NaN (not a number) values. It’s important to check for NaNs (and
not just because it’s socially moral) because these cause errors in
the machine learning models.
There are a lot of categorical variables that are marked as N/A when
a feature of the house is nonexistent. For example, when no alley is
present. I identified all the cases where this was happening across
the training and test data and replaced the N/As with something
more descriptive. N/As can cause errors with machine learning later
down the line so get rid of them.
The data consisted of many null values, outliers and skewness. I
have dropped all the features with 60%+ missing values. Removed
the outliers for training dataset having zscore more than 4 and
treated the skewness of all numerical columns using log
transformation and power transformation techniques.

• About Data and Features


About the columns:
1. 'Id': It gives the ID of the house

2. 'MSSubClass': Identifies the type of dwelling involved in the sale.


20 1-STORY 1946 & NEWER ALL STYLES
30 1-STORY 1945 & OLDER
40 1-STORY W/FINISHED ATTIC ALL AGES
45 1-1/2 STORY - UNFINISHED ALL AGES
50 1-1/2 STORY FINISHED ALL AGES
60 2-STORY 1946 & NEWER
70 2-STORY 1945 & OLDER
75 2-1/2 STORY ALL AGES
80 SPLIT OR MULTI-LEVEL
85 SPLIT FOYER
90 DUPLEX - ALL STYLES AND AGES
120 1-STORY PUD (Planned Unit Development) - 1946 &
NEWER
150 1-1/2 STORY PUD - ALL AGES
160 2-STORY PUD - 1946 & NEWER
180 PUD - MULTILEVEL - INCL SPLIT LEV/FOYER
190 2 FAMILY CONVERSION - ALL STYLES AND AGES

3. 'MSZoning':Identifies the general zoning classification of the sale.


A Agriculture
C Commercial
FV Floating Village Residential
I Industrial
RH Residential High Density
RL Residential Low Density
RP Residential Low Density Park
RM Residential Medium Density

4. 'LotFrontage': Linear feet of street connected to property

5. 'LotArea': Lot size in square feet

6. 'Street': Type of road access to property


Grvl Gravel
Pave Paved

7. 'Alley': Type of alley access to property


Grvl Gravel
Pave Paved
NA No alley access

8. 'LotShape':General shape of property


Reg Regular
IR1 Slightly irregular
IR2 Moderately Irregular
IR3 Irregular

9. 'LandContour': General shape of property


Reg Regular
IR1 Slightly irregular
IR2 Moderately Irregular
IR3 Irregular

10. 'Utilities': Type of utilities available


AllPub All public Utilities (E,G,W,& S)
NoSewr Electricity, Gas, and Water (Septic Tank)
NoSeWa Electricity and Gas Only
ELO Electricity only

11. 'LotConfig': Lot configuration


Inside Inside lot
Corner Corner lot
CulDSac Cul-de-sac
FR2 Frontage on 2 sides of property
FR3 Frontage on 3 sides of property

12. 'LandSlope': Slope of property


Gtl Gentle slope
Mod Moderate Slope
Sev Severe Slope

13. 'Neighborhood': Physical locations within Ames city limits

Blmngtn Bloomington Heights


Blueste Bluestem
BrDale Briardale
BrkSide Brookside
ClearCr Clear Creek
CollgCr College Creek
Crawfor Crawford
Edwards Edwards
Gilbert Gilbert
IDOTRR Iowa DOT and Rail Road
MeadowV Meadow Village
Mitchel Mitchell
Names North Ames
NoRidge Northridge
NPkVill Northpark Villa
NridgHt Northridge Heights
NWAmes Northwest Ames
OldTown Old Town
SWISU South & West of Iowa State University
Sawyer Sawyer
SawyerW Sawyer West
Somerst Somerset
StoneBr Stone Brook
Timber Timberland
Veenker Veenker

14. 'Condition1': Proximity to various conditions

Artery Adjacent to arterial street


Feedr Adjacent to feeder street
Norm Normal
RRNn Within 200' of North-South Railroad
RRAn Adjacent to North-South Railroad
PosN Near positive off-site feature--park, greenbelt, etc.
PosA Adjacent to postive off-site feature
RRNe Within 200' of East-West Railroad
RRAe Adjacent to East-West Railroad

15. 'Condition2': Proximity to various conditions (if more than one is


present)

Artery Adjacent to arterial street


Feedr Adjacent to feeder street
Norm Normal
RRNn Within 200' of North-South Railroad
RRAn Adjacent to North-South Railroad
PosN Near positive off-site feature--park, greenbelt, etc.
PosA Adjacent to postive off-site feature
RRNe Within 200' of East-West Railroad
RRAe Adjacent to East-West Railroad

16. 'BldgType': Type of dwelling

1Fam Single-family Detached


2FmCon Two-family Conversion; originally built as one-
family dwelling
Duplx Duplex
TwnhsE Townhouse End Unit
TwnhsI Townhouse Inside Unit

17. 'HouseStyle': Style of dwelling

1Story One story


1.5Fin One and one-half story: 2nd level finished
1.5Unf One and one-half story: 2nd level unfinished
2Story Two story
2.5Fin Two and one-half story: 2nd level finished
2.5Unf Two and one-half story: 2nd level unfinished
SFoyer Split Foyer
SLvl Split Level

18. 'OverallQual': Rates the overall material and finish of the house

10 Very Excellent
9 Excellent
8 Very Good
7 Good
6 Above Average
5 Average
4 Below Average
3 Fair
2 Poor
1 Very Poor
19. 'OverallCond': Rates the overall condition of the house

10 Very Excellent
9 Excellent
8 Very Good
7 Good
6 Above Average
5 Average
4 Below Average
3 Fair
2 Poor
1 Very Poor

20. 'YearBuilt': Original construction date

21. 'YearRemodAdd': Remodel date (same as construction date if no


remodeling or additions)

22. 'RoofStyle': Type of roof

Flat Flat
Gable Gable
Gambrel Gabrel (Barn)
Hip Hip
Mansard Mansard
Shed Shed

23. 'RoofMatl': Roof material

ClyTile Clay or Tile


CompShg Standard (Composite) Shingle
Membran Membrane
Metal Metal
Roll Roll
Tar&Grv Gravel & Tar
WdShake Wood Shakes
WdShngl Wood Shingles

24. 'Exterior1st': Exterior covering on house

AsbShng Asbestos Shingles


AsphShn Asphalt Shingles
BrkComm Brick Common
BrkFaceBrick Face
CBlock Cinder Block
CemntBd Cement Board
HdBoard Hard Board
ImStuccImitation Stucco
MetalSd Metal Siding
Other Other
Plywood Plywood
PreCast PreCast
Stone Stone
Stucco Stucco
VinylSd Vinyl Siding
Wd Sdng Wood Siding
WdShing Wood Shingles

25. 'Exterior2nd': Exterior covering on house (if more than one


material)

AsbShng Asbestos Shingles


AsphShn Asphalt Shingles
BrkComm Brick Common
BrkFaceBrick Face
CBlock Cinder Block
CemntBd Cement Board
HdBoard Hard Board
ImStuccImitation Stucco
MetalSd Metal Siding
Other Other
Plywood Plywood
PreCast PreCast
Stone Stone
Stucco Stucco
VinylSd Vinyl Siding
Wd Sdng Wood Siding
WdShing Wood Shingles

26. 'MasVnrType': Masonry veneer type

BrkCmnBrick Common
BrkFaceBrick Face
CBlock Cinder Block
None None
Stone Stone

27. 'MasVnrArea': Masonry veneer area in square feet

28. 'ExterQual': Evaluates the quality of the material on the exterior

Ex Excellent
Gd Good
TA Average/Typical
Fa Fair
Po Poor

29. 'ExterCond': Evaluates the present condition of the material on


the exterior

Ex Excellent
Gd Good
TA Average/Typical
Fa Fair
Po Poor

30. 'Foundation': Type of foundation

BrkTil Brick & Tile


CBlock Cinder Block
PConc Poured Contrete
Slab Slab
Stone Stone
Wood Wood

31. 'BsmtQual': Evaluates the height of the basement

Ex Excellent (100+ inches)


Gd Good (90-99 inches)
TA Typical (80-89 inches)
Fa Fair (70-79 inches)
Po Poor (<70 inches
NA No Basement

32. 'BsmtCond': Evaluates the general condition of the basement

Ex Excellent
Gd Good
TA Typical - slight dampness allowed
Fa Fair - dampness or some cracking or settling
Po Poor - Severe cracking, settling, or wetness
NA No Basement

33. 'BsmtExposure': Refers to walkout or garden level walls

Gd Good Exposure
Av Average Exposure (split levels or foyers typically score
average or above)
Mn Mimimum Exposure
No No Exposure
NA No Basement

34. 'BsmtFinType1': Rating of basement finished area

GLQ Good Living Quarters


ALQ Average Living Quarters
BLQ Below Average Living Quarters
Rec Average Rec Room
LwQ Low Quality
Unf Unfinshed
NA No Basement

35. 'BsmtFinSF1': Type 1 finished square feet

36. 'BsmtFinType2': Rating of basement finished area (if multiple


types)

GLQ Good Living Quarters


ALQ Average Living Quarters
BLQ Below Average Living Quarters
Rec Average Rec Room
LwQ Low Quality
Unf Unfinshed
NA No Basement

37. 'BsmtFinSF2': Type 2 finished square feet

38. 'BsmtUnfSF': Unfinished square feet of basement area

39. 'TotalBsmtSF': Total square feet of basement area

40. 'Heating': Type of heating

Floor Floor Furnace


GasA Gas forced warm air furnace
GasW Gas hot water or steam heat
Grav Gravity furnace
OthW Hot water or steam heat other than gas
Wall Wall furnace

41. 'HeatingQC': Heating quality and condition

Ex Excellent
Gd Good
TA Average/Typical
Fa Fair
Po Poor

42. 'CentralAir': Central air conditioning

N No
Y Yes

43. 'Electrical': Electrical system

SBrkr Standard Circuit Breakers & Romex


FuseA Fuse Box over 60 AMP and all Romex wiring (Average)

FuseF 60 AMP Fuse Box and mostly Romex wiring (Fair)


FuseP 60 AMP Fuse Box and mostly knob & tube wiring (poor)
Mix Mixed

44. '1stFlrSF': First Floor square feet

45. '2ndFlrSF': Second floor square feet

46. 'LowQualFinSF': Low quality finished square feet (all floors)

47. 'GrLivArea': Above grade (ground) living area square feet


48. 'BsmtFullBath': Basement full bathrooms

49. 'BsmtHalfBath': Basement half bathrooms

50. 'FullBath': Full bathrooms above grade

51. 'HalfBath': Half baths above grade

52. 'BedroomAbvGr': Bedrooms above grade (does NOT include


basement bedrooms)

53. 'KitchenAbvGr': Kitchens above grade

54. 'KitchenQual': Kitchen quality

Ex Excellent
Gd Good
TA Typical/Average
Fa Fair
Po Poor

55. 'TotRmsAbvGrd': Total rooms above grade (does not include


bathrooms)

56. 'Functional': Home functionality (Assume typical unless


deductions are warranted)

Typ Typical Functionality


Min1 Minor Deductions 1
Min2 Minor Deductions 2
Mod Moderate Deductions
Maj1 Major Deductions 1
Maj2 Major Deductions 2
Sev Severely Damaged
Sal Salvage only

57. 'Fireplaces': Number of fireplaces

58. 'FireplaceQu': Fireplace quality

Ex Excellent - Exceptional Masonry Fireplace


Gd Good - Masonry Fireplace in main level
TA Average - Prefabricated Fireplace in main living area or
Masonry Fireplace in basement
Fa Fair - Prefabricated Fireplace in basement
Po Poor - Ben Franklin Stove
NA No Fireplace

59. 'GarageType': Garage location

2Types More than one type of garage


Attchd Attached to home
Basment Basement Garage
BuiltIn Built-In (Garage part of house - typically has room
above garage)
CarPort Car Port
Detchd Detached from home
NA No Garage

60. 'GarageYrBlt': Year garage was built

61. 'GarageFinish': Interior finish of the garage

Fin Finished
RFn Rough Finished
Unf Unfinished
NA No Garage

62. 'GarageCars': Size of garage in car capacity


63. 'GarageArea': Size of garage in square feet

64. 'GarageQual': Garage quality

Ex Excellent
Gd Good
TA Typical/Average
Fa Fair
Po Poor
NA No Garage

65. 'GarageCond': Garage condition

Ex Excellent
Gd Good
TA Typical/Average
Fa Fair
Po Poor
NA No Garage

66. 'PavedDrive': Paved driveway

Y Paved
P Partial Pavement
N Dirt/Gravel

67. 'WoodDeckSF': Wood deck area in square feet

68. 'OpenPorchSF': Open porch area in square feet

69. 'EnclosedPorch': Enclosed porch area in square feet


70. '3SsnPorch': Three season porch area in square feet
71. 'ScreenPorch': Screen porch area in square feet
72. 'PoolArea': Pool area in square feet
73. 'PoolQC': Pool quality

Ex Excellent
Gd Good
TA Average/Typical
Fa Fair
NA No Pool

74. 'Fence': Fence quality

GdPrv Good Privacy


MnPrv Minimum Privacy
GdWo Good Wood
MnWw Minimum Wood/Wire
NA No Fence

75. 'MiscFeature': Miscellaneous feature not covered in other


categories

Elev Elevator
Gar2 2nd Garage (if not described in garage section)
Othr Other
Shed Shed (over 100 SF)
TenC Tennis Court
NA None

76. 'MiscVal': (dollar)Value of miscellaneous feature


77. 'MoSold': Month Sold (MM)
78. 'YrSold': Year Sold (YYYY)

79. 'SaleType': Type of sale

WD Warranty Deed - Conventional


CWD Warranty Deed - Cash
VWD Warranty Deed - VA Loan
New Home just constructed and sold
COD Court Officer Deed/Estate
Con Contract 15% Down payment regular terms
ConLw Contract Low Down payment and low interest
ConLI Contract Low Interest
ConLD Contract Low Down
Oth Other

80. 'SaleCondition': Condition of sal

81. 'SalePrice': Selling price of the house.


It is out target variable.

• Hardware and Software Requirements and Tools Used


I used Python and Jupyter notebooks for the project building.
Libraries: These are frameworks in python to handle commonly
required tasks.
i) Pandas – For handling structured data
ii) Numpy – For linear algebra and mathematics
iii) Scikit Learn – For Machine Learning
iv) Seaborn – For data visualization.
v) Matplotlib – For data visualization
Model/s Development and Evaluation

• Identification of possible problem-solving approaches


(methods)
Both Lasso and Ridge use the concepts of coefficients of Regression
model to rank the feature importance. The higher the coefficients,
the more important the features. Both work well when data is in
linear shape and not too many noisy data exist. Since our data do
not have many noisy data exist, we assume the Lasso and Ridge will
work good. Lasso and Ridge are regularization models. Lasso is L1
Regularization. It adds penalty to the loss function with a term
α∑|wi|. The weak features have zero coefficients in Lasso model.
Increase alpha parameter in Lasso function will produce more zeros
in the coefficient.
Random Forest is a calculation worked with numerous decision
trees. Each hub is a highlight condition. Sklearn has
RandomForestRegressor() with built-in highlight significance work.
In the wake of fitting with RandomForestRegressor(), we can call
feature importances to get the significance score for each compo
-nent. The higher the score, the more significant the highlight is.

• Testing of Identified Approaches (Algorithms)


I have used Following algorithms in my project:
i) Linear Regression
ii) Ridge
iii) Elastic Net
iv) SGD Regressor
v) K Neighbours Regressor
vi) Decision Tree Regressor
vii) Random Forest Regressor
viii) Gradient Boosting Regressor
• Run and Evaluate selected models
i) Linear Regression:
Linear regression is used to predict the relationship between
two variables by applying a linear equation to observed data.
There are two types of variable, one variable is called an
independent variable, and the other is a dependent variable.
Linear regression is commonly used for predictive analysis.
The main idea of regression is to examine two things. First,
does a set of predictor variables do a good job in predicting
an outcome (dependent) variable? The second thing is which
variables are significant predictors of the outcome variable ?.

ii) Ridge:
The Ridge regression is a procedure which is particular to
investigate multiple regression data which is multicollinearity
in nature.
iii) Elastic Net:
Sklearn provides a linear model named ElasticNet which is
trained with both L1, L2-norm for regularisation of the
coefficients. The advantage of such combination is that it
allows for learning a sparse model where few of the weights
are non-zero like Lasso regularisation method, while still
maintaining the regularization properties of Ridge
regularisation method.

iv) SGD Regressor:


SGD represents Stochastic Gradient Descent: the inclination
of the misfortune is assessed each example at a time and the
model is refreshed en route with a diminishing strength plan
(otherwise known as learning rate).

The regularizer is a punishment added to the shortfall work


that psychologists model boundaries towards the zero vector
utilizing either the squared euclidean standard L2 or the
outright standard L1 or a blend of both (Elastic Net). On the
off chance that the boundary update crosses the 0.0 worth as
a result of the regularizer, the update is shortened to 0.0 to
take into consideration learning inadequate models and
accomplish online component determination.

This execution works with information addressed as thick


numpy varieties of drifting point values for the highlights.
v) KNeighbours Regressor:
KNeighborsRegressor. The K for the sake of this regressor
addresses the k closest neighbors, where k is a whole number
worth determined by the client. Subsequently, as the name
recommends, this regressor carries out learning in light of the
k closest neighbors. The decision of the worth of k is reliant
upon information.

vi) Decision Tree Regressor:


Decision tree regression notices highlights of an article and
trains a model in the construction of a tree to anticipate
information in the future to deliver significant consistent
result. Persistent result implies that the result/result isn't
discrete, i.e., it isn't addressed just by a discrete, known
arrangement of numbers or values.
vii) Random Forest Regressor:
Random forest regression is an ensemble learning technique.
In ensemble learning, we take different algorithms or same
algorithm on numerous occasions and set up a model that is
more impressive than the first.

viii) Gradient Boosting Regressor:


GB builds an additive model in a forward stage-wise fashion;
it allows for the optimization of arbitrary differentiable loss
functions as each predictor corrects its predecessor’s error.
• Visualizations
i) Histogram:

We have observed from the above histogram plot that the


columns like 'Street', 'Utilities', 'LotContour', 'KitchenAbvGr',
'3SsnPorch', 'PoolArea', and 'YrSold' have least contribution in
the data prediction as they contains of almost only same
values in them.
ii) Distribution plot:

It tells about the distribution of data.


iii) Bar Graph:

Bar graph gives the relationship between the target variable


and all the features.
iv) Violin Plot:

Our dataset contains a lot of variables, but the most


important one for us to explore is the target variable. We
need to understand its distribution. First, we start by plotting
the violin plot for the target variable. The width of the violin
represents the frequency.

We can see from the plot that most house prices fall between
100,000 and 250,000. The dashed lines represent the
locations of the three quartiles Q1, Q2 (the median), and Q3.
v) Boxplot:

Boxplot tells us about the quartiles, interquartile range and


his work over there.
vi) Heatmap:

Heatmap gives the correlation between the features and feature-


target.
With that, we have finished the Data Visualization process. Our next
step is to select and define the dependent variables and the independent
variables and split them into a train set and test set.

• Interpretation of the Results


Give a summary of what results were interpreted from the
visualizations, preprocessing and modelling.
After visualization and preprocessing, we have reduced the
dimension of the dataset effectively. We have all the columns that
does not contribute in prediction of target, or which has the least
correlation with the target or having the maximum multicollinearity
with other features.
CONCLUSION
• Key Findings and Conclusions of the Study
Here, we constructed serveral relapse models to anticipate the cost
of some house given some of the house highlights. We eveluated
and contrasted each model with decide the one with most
noteworthy execution. We additionally saw how a few models rank
the highlights as indicated by their significance.
In this project, we followed the information science process
beginning with getting the information, then, at that point, cleaning
what's more preprocessing the information, trailed by investigating
the information and building models, then, at that point, assessing
the outcomes and discussing them with representations

• Learning Outcomes of the Study in respect of Data


Science
We have used 8 different algorithms and all are working very fine.
The Score of each algorithms is above 0.8 0r 80%.
The r2 Score (Accuracy) of each model is 85%+ except for Decision
Tree Classifier (It has only 78% accuracy).
Coming to the case of choosing best model, Random Forest
Regressor turned out to be the one being most accurate compared
from others followed by Gradient Boosting Regressor.
The accuracy of Random Forest is 89% with a score of 0.98 which
can be used to solve real world problems easily.

• Limitations of this work and Scope for Future Work


What might be more fascinating in my view is; on the off chance
that we could add second layer to the model result or might be
second step where results from this model are taken care of into
second model which would then conjecture region house costs a
half year, year and a half, etc into what's to come. This would
permit the open door not exclusively to anticipate the house costs
yet additionally to see what's on the horizon at the house costs.
Furthermore this is by and large the sort of bits of knowledge Real
Estate Investment groups need to make right speculations.

As a suggestion, I encourage to utilize this model (or an adaptation


of it prepared with later information) by individuals who need to
purchase a house in the space covered by the dataset to have a
thought regarding the genuine cost. The model can be utilized
additionally with datasets that cover various urban communities
and regions given that they contain similar highlights. I additionally
recommend that individuals think about the highlights that were
considered as most significant as found in the past segment; this
may help them gauge the house value better.

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