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    Airbnb - Price Prediction

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    Sujith Kumar
    This document summarizes the methodology used to predict Airbnb property prices using machine learning models. It includes data cleaning, exploration of correlations between variables, model selection, and interpretation of results. Key steps involved splitting data into training and test sets, handling missing values, selecting relevant variables, checking for issues like multicollinearity and heteroscedasticity, visualizing relationships, and training a linear regression model to predict log prices. The best-fitting model explained over 50% of price variability based on property details like room type, location, amenities.

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    Airbnb - Price Prediction

    Uploaded by

    Sujith Kumar
    203 views9 pages
    This document summarizes the methodology used to predict Airbnb property prices using machine learning models. It includes data cleaning, exploration of correlations between variables, model selection, and interpretation of results. Key steps involved splitting data into training and test sets, handling missing values, selecting relevant variables, checking for issues like multicollinearity and heteroscedasticity, visualizing relationships, and training a linear regression model to predict log prices. The best-fitting model explained over 50% of price variability based on property details like room type, location, amenities.

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    Price prediction

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    Airbnb_Price prediction

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    This document summarizes the methodology used to predict Airbnb property prices using machine learning models. It includes data cleaning, exploration of correlations between variables, model selection, and interpretation of results. Key steps involved splitting data into training and test sets, handling missing values, selecting relevant variables, checking for issues like multicollinearity and heteroscedasticity, visualizing relationships, and training a linear regression model to predict log prices. The best-fitting model explained over 50% of price variability based on property details like room type, location, amenities.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
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    Download as pptx, pdf, or txt
    203 views9 pages

    Airbnb - Price Prediction

    Uploaded by

    Sujith Kumar
    This document summarizes the methodology used to predict Airbnb property prices using machine learning models. It includes data cleaning, exploration of correlations between variables, model selection, and interpretation of results. Key steps involved splitting data into training and test sets, handling missing values, selecting relevant variables, checking for issues like multicollinearity and heteroscedasticity, visualizing relationships, and training a linear regression model to predict log prices. The best-fitting model explained over 50% of price variability based on property details like room type, location, amenities.

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    of 9

    Airbnb Price

    Prediction
    C-12
    Anmol | Kinara | Kiran | Saumya | Sujith
    METHODOLOGY

    Data Cleaning & Train-Test Split Data Exploration


    • 70-30 Split • Multiple Correlation
    • Handling missing values • Multi-collinearity
    • Dummy Variables for Categorical Variables • Auto-Correlation
    • Heteroscedasticity
    • Feature Selection

    Data Visualization Model Selection


    • Visualization of Independent variables • Linear Regression Model
    against dependent variable (log_price)

    Model Prediction
    Variable Description Data Value
    Example
    ID Unique ID for each transaction 6304928
    Price Price in dollars of the property for one day 154
    Property_Type Type of Property Appartment/House
    Room_Type Type of the room Private, Sharing,
    etc
    Accomodation Number of people that can be accomodated 7
    Bathrooms Number of bathrooms 1
    Bedrooms Number of Bed rooms 2
    DATA
    Bed_Type Type of the bed Real Bed
    DESCRIPTION Cancellation_Type Leeway in Cancelation policy Strict, Moderate
    Cleaning_fee Is there additional cleaning fee? TRUE/ FALSE
    City City in which property resides NewYork
    Host_has_Profile_pic Is host profile picture visible? TRUE/FALSE
    Host_identity_verified Is Host identity verifed? TRUE/FALSE
    Host_response_rate Proportion of queries host has responded
    Instant_bookable Can the property be instantly booked? TRUE/FALSE
    Review Rating
    Number of Reviews
    VARIABLE SELECTION

    CORRELATION
    MATRIX
    MULTICOLLINEARITY
    TEST
    VIF Test
    AUTOCORRELATION TEST

    Durbin-Watson Test

    CHECK FOR
    HOMOSCEDASTICITY
    RESULTS

    Explains 50.86% of the model


    INTERPRETATIONS

    • A near zero intercept suggests the variables used in the


    model are highly significant and no further variable
    processing is required
    • Houses have the highest price compared to other
    building categories
    • Higher negative coefficient for private room shows that
    shared room are priced higher, which is contrary to the
    common reasoning
    • Cancellation policies and host characteristics have a
    very low impact on overall pricing and are overall
    insignificant
    • Number of bedrooms and bathrooms in the facility are
    the most significant factors in price determination
    • Location/City of residence also significantly impacts the
    price levels
    • The errors in our model are nearly normally distributed
    with a standard deviation of 102
    THANK YOU

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