Predicting house prices

In the previous case study, we had an output that was categorical. In this case study, we shall look into an output that is continuous in nature, by trying to predict the price of a house where 13 variables that are likely to impact the house price are provided as input.

The objective is to minimize the error by which we predict the price of a house.

Getting ready

Given that the objective is to minimize error, let's define the error that we shall be minimizing—we should ensure that a positive error and a negative error do not cancel out each other. Hence, we shall minimize the absolute error. An alternative of this is to minimize the squared error.

Now that we have fine-tuned our objective...