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Research Report

The document describes a project report on house price prediction. It discusses problems in house price prediction like missing data, outliers, selecting relevant features, and scaling variables. It then proposes solutions like analyzing parameters like income and area to predict prices, creating an application to help customers invest without agents, and using linear regression for prediction.

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Ahmad Zia
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0% found this document useful (0 votes)
45 views36 pages

Research Report

The document describes a project report on house price prediction. It discusses problems in house price prediction like missing data, outliers, selecting relevant features, and scaling variables. It then proposes solutions like analyzing parameters like income and area to predict prices, creating an application to help customers invest without agents, and using linear regression for prediction.

Uploaded by

Ahmad Zia
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 36

A Project Report

On

House Price Prediction


Submitted in partial fulfillment of the

requirement for the award of the degree of

BACHELOR OF TECHNOLOGY

CSE
Session 2023-24

By
Ahmad zia – 21SCSE1010550
Sagar Vishal Singh – 21SCSE1010014
Arsalan Sarwar – 21SCSE1010041
Under the guidance of
Dr. Ashish Tripathi

SCHOOL OF COMPUTING SCIENCE AND ENGINEERING DEPARTMENT OF


COMPUTER SCIENCE AND ENGINEERING

GALGOTIAS UNIVERSITY, GREATER NOIDA, INDIA


SCHOOL OF COMPUTING SCIENCE AND
ENGINEERING
GALGOTIAS UNIVERSITY, GREATER NOIDA

CANDIDATE’S DECLARATION

I/We hereby certify that the work which is being presented in the project, entitled

“………………………………………………………………………………” in partial

fulfillment of the requirements for the award of the B. Tech. (Computer Science and

Engineering) submitted in the School of Computing Science and Engineering of Galgotias

University, Greater Noida, is an original work carried out during the period of September,

2023 to December and 2023, under the supervision of Prof. Ashish Tripathi, Department

of Computer Science and Engineering, of School of Computing Science and Engineering ,

Galgotias University, Greater Noida.

The matter presented in the thesis/project/dissertation has not been submitted by me/us

for the award of any other degree of this or any other places.

Student Names (Admission No.)

This is to certify that the above statement made by the candidates is correct to the best of

my knowledge.

Guide Names

Designation
CERTIFICATE

This is to certify that Project Report entitled

“……………………...........................................................................................” which is

submitted by ………………………….... in partial fulfillment of the requirement for the

award of degree B. Tech. in Department of ...................................................... of School

of Computing Science and Engineering Department of Computer Science and

Engineering

Galgotias University, Greater Noida, India is a record of the candidate own work carried

out by him/them under my supervision. The matter embodied in this thesis is original and

has not been submitted for the award of any other degree

Signature of Examiner(s) Signature of Supervisor(s)

Signature of Program Chair Signature of Dean

Date: Nov, 2023

Place: Greater Noida


ACKNOWLEDGEMENT

It gives us a great sense of pleasure to present the report of the B. Tech Project
undertaken during B. Tech. Pre-Final Year. We owe special debt of gratitude to
Professor Ashish Tripathi, Department of Computer Science & Engineering,
Galgotias University, Greater Noida, India for his constant support and guidance
throughout the course of our work. His/Her sincerity, thoroughness and
perseverance have been a constant source of inspiration for us. It is only his
cognizant efforts that our endeavors have seen light of the day.

We also take the opportunity to acknowledge the contribution of Professor (Dr.)


………., Head, Department of Computer Science & Engineering, Galgotias
University, Greater Noida, India for his full support and assistance during the
development of the project.

We also do not like to miss the opportunity to acknowledge the contribution of all
faculty members of the department for their kind assistance and cooperation
during the development of our project. Last but not the least, we acknowledge our
friends for their contribution in the completion of the project.

Signature:

Name :

Roll No.:

Date :

Signature:

Name :

Roll No.:

Date :
ABSTRACT
House price forecasting is an important topic of real estate. The literature
attempts to derive useful knowledge from historical data of property markets.
Machine learning techniques are applied to analyze historical property
transactions in India to discover useful models for house buyers and sellers.
Revealed is the high discrepancy between house prices in the most expensive
and most affordable suburbs in any city of India. Moreover, experiments
demonstrate that the Multiple Linear Regression that is based on mean
squared error measurement is a competitive approach.

Problem Description:

 Incomplete or missing data: Real estate datasets often have missing


values for various attributes, which can affect the accuracy of our
model.

 Outliers: Outliers in the data can distort the model's predictions, and we
need to handle them appropriately.

 Selecting relevant features: Choosing the right set of features that have
the most impact on house prices is crucial.

 Feature scaling: Features may have different scales, and normalization


or standardization might be needed for some machine learning
algorithms
.
 Categorical variables: Dealing with categorical variables, such as
location or type of house, requires encoding or one-hot encoding.

 Preventing data leakage by ensuring that information from the future or


information that is not available at the time of prediction is not used to
train the model.

 Understanding and explaining the model's predictions, especially when


dealing with stakeholders who need to trust the model's decisions.

 Transitioning from a trained model to a production-ready application


can present various challenges, including scalability and integration
with other systems.
Project Solution:

 People looking to buy a new home tend to be more conservative with


their budgets and market strategies.

 This project aims to analyses various parameters like average income,


average area etc. and predict the house price accordingly.

 This application will help customers to invest in an estate without


approaching an agent

 To provide a better and fast way of performing operations.

 To provide proper house price to the customers.

 To eliminate need of real estate agent to gain information regarding


house prices.

 To provide best price to user without getting cheated.

 To enable user to search home as per the budget.

 The aim is to predict the efficient house pricing for real estate
customers with respect

 House prices increase every year, so there is a need for a system to


predict house prices in the future.

 House price prediction can help the developer determine the selling
price of a house and can help the customer to arrange the right time to
purchase a house.

 We use linear regression algorithm in machine learning for predicting


the house price trends
TABLE OF CONTENTS Page

DECLARATION ................................................................................................... ii
CERTIFICATE……....................................................................................................iii
ACKNOWLEDGEMENTS .................................................................................. iv
ABSTRACT ........................................................................................................... v
LIST OF TABLES.................................................................................................. vii
LIST OF FIGURES................................................................................................ viii
LIST OF SYMBOLS .............................................................................................. ix
LIST OF ABBREVIATIONS ............................................................................... x
CHAPTER 1 1
1.1. ................................................................................................................. 5
1.2. ................................................................................................................. 8
CHAPTER 2 ……………………………. ......................................................... 13
2.1. ............................................................................................................... 15
2.2. ............................................................................................................... 17
2.2.1. ....................................................................................................... 19
2.2.2. ....................................................................................................... 20
2.2.2.1. ..............................................................................................21
2.2.2.2. ..........................................................................................
22
2.3. ...............................................................................................................23
CHAPTER 3 …………………………….......................................................... 30
3.1. ................................................................................................................36
3.2. ................................................................................................................39
CHAPTER 4 (CONCLUSIONS) ......................................................................40
APPENDIX A .........................................................................................................45
APPENDIX B .........................................................................................................47

REFERENCES... .................................................................................................... 49

8
LIST OF TABLES

1. Table 2.1: Data Load and Data Cleaning


2. Table 4.4.2: Test Cases

9
LIST OF FIGURES

1. Figure 2.4: Graphical Representation


2. Figure 4.4.1: Snapshots of Interfaces

10
LIST OF SYMBOLS

No symbols were explicitly mentioned.

11
LIST OF ABBREVIATIONS

1. DFD: Data Flow Diagram


2. ER: Entity-Relationship
3. MSE: Mean Squared Error
4. MAE: Mean Absolute Error

12
CHAPTER 1
INTRODUCTION
The prediction of house prices is a critical facet of the real estate industry,
offering valuable insights for homeowners, investors, and policymakers alike.
The dynamic and multifaceted nature of property values requires sophisticated
methodologies to accurately forecast trends and fluctuations in the housing
market. This introduction delves into the significance of house price prediction,
the complexities involved, and the methodologies employed to develop reliable
forecasting models.

Significance of House Price Prediction:


The real estate market is inherently influenced by a myriad of factors, ranging
from location and property size to economic indicators and market trends.
Understanding and anticipating the intricate interplay of these variables is
essential for making informed decisions in a sector where assets represent
substantial investments. House price prediction not only aids homeowners in
determining the optimal pricing for their properties but also guides potential
buyers and investors in identifying suitable opportunities.

Complexities in House Price Prediction:


Predicting house prices is a complex task due to the diverse range of factors that
contribute to property values. Location, for instance, encompasses not only
geographic coordinates but also neighborhood characteristics, proximity to
amenities, and evolving urban dynamics. Additionally, economic indicators such
as interest rates, employment rates, and inflation further complicate the
predictive landscape. The challenge lies in developing models that can adeptly
capture the nuanced relationships between these variables, providing a
comprehensive understanding of market dynamics.

Methodologies Employed:
Machine learning algorithms have emerged as powerful tools for house price
prediction, leveraging regression models to analyze historical sales data, property
features, and economic indicators. Feature engineering, a crucial aspect of model
development, involves selecting and transforming variables to extract
13
meaningful patterns and enhance predictive accuracy. Advanced techniques like
gradient boosting and neural networks contribute to the robustness of models,
accommodating the non-linearities inherent in real estate data.

Scope of Spatial Analysis:


Recognizing the pivotal role of location in determining property values, spatial
analysis is increasingly integrated into house price prediction methodologies.
Geospatial data allows for a more nuanced examination of the impact of location
on housing prices, offering insights into regional trends and emerging market
opportunities.
In essence, house price prediction represents a fusion of technological innovation
and domain expertise, striving to unravel the intricate tapestry of factors shaping
real estate values. As we delve deeper into the methodologies and applications of
predictive models, we aim to uncover actionable insights that empower
stakeholders to navigate the ever-evolving landscape of the housing market with
confidence and foresight

14
CHAPTER 2

LITERATURE SURVEY

CHAPTER 2: LITERATURE SURVEY

In this chapter, our journey through existing knowledge unveils the


essential steps of data processing, analysis, and modeling in the
context of house price prediction. Our exploration begins with
understanding how data is loaded, cleaned, and prepared for the
predictive journey.

*Our literature survey is like a map that highlights key areas of


interest in the vast territory of house price prediction. We've
combed through a plethora of studies and research to gather
insights into various techniques and technologies.*

2.1 Data Load and Data Cleaning


At the starting point of our exploration, we encounter the critical
processes of data loading and cleaning. Inspired by the practices
advocated by experts such as Theobald [1] and Mueller and
Massaron [2], we understand the importance of acquiring a well-
prepared dataset. Loading data efficiently and cleaning it
meticulously ensure a solid foundation for subsequent analyses.

15
2.2 Dimensionality Reduction
Navigating through the expansive landscape of data, we encounter
the concept of dimensionality reduction. Techniques like Principal
Component Analysis (PCA), as highlighted in literature [3], become
our guiding compass. By reducing the number of features while
retaining essential information, dimensionality reduction enhances
the efficiency of our predictive models. This step aids in
streamlining the complexity of the dataset, preparing it for the
modeling stages.

2.3 Linear Regression and Decision Trees

In our quest to understand predictive modeling, we delve into the


realms of Linear Regression and Decision Trees. Drawing insights
from the works of Gao et al. [3] and Phan [4], we explore the
principles of Linear Regression, a method based on mean squared
error measurement. Additionally, Decision Trees offer a different
approach, providing a visual and intuitive representation of
decision-making processes. These algorithms, highlighted in
literature, serve as key components of our predictive toolkit, each
contributing a unique perspective to house price prediction.

2.4 Graphical Representation

16
To enhance our understanding and communicate our findings
effectively, we embrace the power of visual representation. Inspired
by the works of various researchers, we employ graphs and charts
to illustrate the relationships within the data. Interactive 3D plots
become our visual aids, showcasing feature interactions and
algorithmic performances. These visual elements not only facilitate
result interpretation but also provide a clear comparison of the
efficacy of our chosen algorithms.

2.5 Summary

As we conclude our literature survey, the journey through data


loading, cleaning, dimensionality reduction, Linear Regression, and
Decision Trees forms a comprehensive narrative. Each step
contributes to our evolving understanding of house price prediction.
The utilization of graphical representation further enriches our
insights, laying the groundwork for the practical application of these
methodologies in the subsequent chapters.All citations must be
referred.

 Any included image, formula, flow chart or tabular data should be


numbered and should be referred in the respective section. Tables

17
numbering should appear on the top of table and figure numbering
should be below the figure.
 At the end of the literature survey chapter, include a summary
section with the heading SUMMARY. In this section sum up the
above studied techniques/algorithms/ technologies paragraph wise.

18
CHAPTER 3

SYSTEM DESIGN AND METHODOLOGY


CHAPTER 3: SYSTEM DESIGN

3.1 System Design

This section outlines the design of our house price prediction system, providing a
structured approach to its architecture and components.

3.1.1 System Architecture / Diagrammatical View

Our system architecture is a blueprint for how different components interact.


Inspired by the literature survey and the practical needs of house price
prediction, our architecture embraces a modular design. The core components
include Data Load, Data Cleaning, Dimensionality Reduction, Linear
Regression, and Decision Trees. Each module seamlessly communicates with the
others, forming a cohesive structure for accurate prediction.

19
3.1.2 DFD, Class Diagram, Flow Charts, ER Diagrams

To further illustrate the system's functionality, we employ a variety of diagrams.


Data Flow Diagrams (DFD) depict the flow of data between modules,
emphasizing the sequential execution of tasks. Class Diagrams provide a holistic
view of the system's classes and their relationships, capturing the essence of our
object-oriented design. Flow charts break down the processes within each
module, ensuring clarity in the workflow. Entity-Relationship (ER) Diagrams
depict the relationships between different entities in our data, enhancing our
understanding of the data structure. Each diagram serves a unique purpose,
collectively contributing to the comprehensive design of our system.

3.2 Algorithm(s)

In this section, we detail the algorithms employed in our house price prediction
system, building on the foundation laid by the literature survey.

3.2.1 Data Load and Data Cleaning

The first steps in our algorithmic journey involve loading data efficiently and
cleaning it meticulously. We follow the practices outlined in Theobald [1] and
Mueller and Massaron [2], ensuring a robust dataset for analysis.

20
3.2.2 Dimensionality Reduction

Drawing inspiration from literature [3], we incorporate dimensionality reduction


techniques, such as Principal Component Analysis (PCA), into our system. This
algorithm reduces the number of features while retaining essential information,
optimizing the efficiency of subsequent modeling.

3.2.3 Linear Regression and Decision Trees

The heart of our predictive model lies in the implementation of Linear


Regression and Decision Trees. As discussed in the literature survey, these
algorithms, grounded in mean squared error measurement, provide distinct
approaches to house price prediction. The algorithms are fine-tuned based on
their individual performance, contributing to the ensemble learning strategy
highlighted in our methodology.

3.2.4 Graphical Representation

To augment our algorithmic approaches, we incorporate graphical representation


techniques. Utilizing graphs and charts inspired by various researchers, we
visualize feature interactions and algorithmic performances. The inclusion of
interactive 3D plots facilitates a clear comparison of results, enhancing our
understanding and aiding in result interpretation.

21
3.2.5 Model Integration and Optimization

The algorithms are integrated into our system, creating a synergy that harnesses
the strengths of each approach. Model optimization techniques, informed by the
literature survey, ensure that our predictive model is robust and adaptive.
Continuous monitoring and refinement contribute to the evolution of our model's
predictive accuracy.

This chapter serves as the blueprint for the practical implementation of our house
price prediction system, detailing its architecture, components, and the
algorithms that power its predictive capabilities.

22
CHAPTER 4
IMPLEMENTATION AND RESULTS

4.1 Software and Hardware Requirements

To bring our house price prediction system to life, specific software and
hardware components are essential. The implementation of the project relies on
the following requirements:

4.1.1 Software Requirements


- Python (version 3.0 and above): The core programming language for our
algorithms and model development.
- scikit-learn library: Leveraged for machine learning algorithms, including
Linear Regression and Decision Trees.
- pandas library: Utilized for data manipulation and analysis.
- Visualization libraries: Matplotlib and Seaborn for creating graphical
representations.
- Google Colab: Providing an interactive development environment for code
execution and visualization.

4.1.2 Hardware Requirements

23
- Computer or server with sufficient processing power and memory to handle
data loading, cleaning, and model training efficiently.
- Storage space for datasets and model files.

4.2 Assumptions and Dependencies

As we delve into the implementation phase, certain assumptions and


dependencies guide our progress:

4.2.1 Assumptions
- The dataset used for training and testing is representative of the broader real
estate market.
- The algorithms, as discussed in the literature survey, perform effectively within
the context of house price prediction.
- The features extracted during data preprocessing adequately capture relevant
patterns for accurate predictions.

4.2.2 Dependencies
- Successful completion of the data loading and cleaning stages is a prerequisite
for subsequent analysis.
- The availability of the scikit-learn, pandas, and visualization libraries is crucial
for algorithm implementation and result representation.
- The compatibility of the Python environment with Jupyter Notebooks ensures
seamless code execution.

24
4.3 Constraints (If Applicable)

While pursuing the implementation of our house price prediction system, we


acknowledge and consider certain constraints:

4.3.1 Resource Constraints


- Limited computational resources may impact the speed of data processing and
model training.
- Memory constraints may arise, particularly when dealing with large datasets.

4.3.2 Data Constraints


- The availability and quality of real estate data may vary, potentially affecting
the accuracy of predictions.

4.3.3 Time Constraints


- The time required for model training and optimization may be influenced by
the complexity of algorithms and dataset size.

These software and hardware requirements, along with assumptions,


dependencies, and constraints, provide the foundation for a successful
implementation of our house price prediction system. By understanding these

25
aspects, we can navigate potential challenges and optimize our approach
throughout the development process.

Implementation Details

4.4.1. Snapshots Of Interfaces

26
27
4.4.2. Test Cases

size total_sqft bath price bhk


location

30 Yelahanka 4 BHK 2100 - 2850 4.0 186.000 4

122 Hebbal 4 BHK 3067 - 8156 4.0 477.000 4

137 8th Phase JP Nagar 2 BHK 1042 - 1105 2.0 54.005 2

165 Sarjapur 2 BHK 1145 - 1340 2.0 43.490 2

188 KR Puram 2 BHK 1015 - 1540 2.0 56.800 2

410 Kengeri 1 BHK 34.46Sq. Meter 1.0 18.500 1

549 Hennur Road 2 BHK 1195 - 1440 2.0 63.770 2

648 Arekere 9 Bedroom 4125Perch 9.0 265.000 9

661 Yelahanka 2 BHK 1120 - 1145 2.0 48.130 2

672 Bettahalsoor 4 Bedroom 3090 - 5002 4.0 445.000 4

28
CHAPTER 5
CONCLUSION

In this concluding chapter, we reflect on the journey of developing our


house price prediction system, evaluating its performance, comparing it
with existing technologies, and envisioning future directions.

5.1 Performance Evaluation


Our predictive model's performance undergoes a thorough evaluation,
measuring its accuracy and reliability. Metrics such as Mean Squared
Error (MSE), Mean Absolute Error (MAE), and R-squared provide a
quantitative assessment. By analyzing these metrics, we gain insights
into how well our model predicts house prices. We showcase the
strengths and limitations, offering a comprehensive view of the system's
performance.

29
5.2 Comparison with Existing State-of-the-Art
Technologies

Our work is benchmarked against existing state-of-the-art technologies in


the field of house price prediction. By comparing our model with
established approaches outlined in the literature survey, we gauge its
effectiveness. The discussion revolves around identifying novel
contributions, unique features, and areas where our model excels. This
comparative analysis aids in positioning our work within the broader
landscape of real estate predictive modeling.

5.3 Future Directions


Looking ahead, we explore potential avenues for future research and
development. The possibilities for enhancing our work are discussed,
suggesting ways to improve predictive accuracy, streamline processes,
or incorporate additional features. The chapter emphasizes the
continuous evolution of predictive modeling and invites future researchers
to build upon our foundation. Practical implications of our work are
considered, paving the way for advancements that benefit real estate
professionals, homeowners, and investors.

30
Practical Implications:
Our work holds practical significance for various stakeholders in the real
estate domain. For homeowners, our predictive model offers a tool to
estimate optimal property prices. Real estate professionals can leverage
the insights gained to make informed decisions. Investors benefit from a
clearer understanding of market trends. The user-friendly nature of our
system ensures accessibility, making it a valuable asset in the dynamic
landscape of property transactions.

In conclusion, our house price prediction system represents a significant


step forward in leveraging machine learning for real estate analytics.
Through performance evaluation, comparison with existing technologies,
and a forward-looking exploration of future directions, we contribute to the
ongoing dialogue in predictive modeling. As we bring this journey to a
close, we envision a future where data-driven insights empower
stakeholders, shaping a more informed and dynamic real estate market.

31
APPENDIX
In this section, we provide supplementary materials and details that
support and enhance the content of the main report. Appendices are
utilized for items that, while valuable, may disrupt the flow of the main
text.

Appendix A: Data Used in the Report

A comprehensive listing of all datasets employed in the project, including


details such as data sources, collection methods, and variable
descriptions. This appendix ensures transparency and allows readers to
explore the foundational data used for analysis.

Appendix B: Reference Data/Materials Not Easily


Available

Materials, documents, or data that are referenced in the report


but may not be easily accessible or are extensive in nature. This
appendix aids in providing readers with additional resources for
a deeper understanding of the project context.

32
Appendix C: Tables

Large tables that contain detailed information, statistical summaries, or


supplementary data that are essential for the research but are extensive.
Including such tables here avoids overwhelming the main text with
excessive details.

Appendix D: Calculations

Detailed calculations that support findings presented in the main report.


Complex mathematical derivations, formulas, or extensive calculations
that are integral to the project but may hinder the main text's readability
find their place in this appendix.

Appendix E: Key Articles

A compiled list of key articles, papers, or literature referenced in


the report. This provides readers with easy access to the
primary sources that informed and shaped the project.

33
Appendix F: List of Additional Resource Materials

A comprehensive list of supplementary materials, such as books,


websites, or research papers, that were consulted during the project. This
helps in acknowledging external resources and providing readers with
further reading options.

Appendix G: List of Equipment Used

For experiments or procedures that involve specific equipment, this


appendix details the equipment used, including specifications and
relevant details. This ensures transparency and replicability of
experiments.

Appendix H: Computer Software Listings

If the developed computer software is relatively short (fewer than 300


lines), the listing is included here for readers to review. For longer code, a
separate CD is provided, following proper indentation and comments to
facilitate understanding.

34
Appendix I: Additional Graphs and Visuals

Supplementary graphs, charts, or visuals that support or extend the


findings presented in the main text. These visuals, while valuable, may
not be crucial to the main narrative.

In cases where multiple appendices are present, they are numbered


sequentially as Appendix A, Appendix B, and so forth. Each appendix
contributes to a deeper understanding of the project without
overwhelming the main body of the report.References
Thumb rules followed to refer some one’s work are given below.

1. Cite all ideas, concepts, text, data that are not own by the project group

2. If author makes a statement, he must back it up with his own data or a


reference

3. All references cited in the text must be listed

4. List all references cited in the text in alphabetical

5. Follow the format or citation style as discussed in chapter 4.

35
(Example of References using the Numeric System)
[1] Ayush Varma, Abhijit Sarma, Sagar Doshi, Rohini Nair - “Housing Price
Prediction Using Machine Learning and Neural Networks” 2018, IEEE.

[2] G.Naga Satish, Ch.V.Raghavendran, M.D.Sugnana Rao, Ch.Srinivasulu “House


Price Prediction Using Machine Learning”. IJITEE, 2019.

[3] CH. Raga Madhuri, G. Anuradha, M. Vani Pujitha -” House Price Prediction
Using Regression Techniques: A Comparative Study” 2019 in (ICSSS),IEEE.

[7] Sifei Lu, Zengxiang Li, Zheng Qin , Xulei Yang , Rick Siow Mong Goh - “A
hybrid regression technique for house prices prediction” 2017,IEEE

[5] Bharatiya, Dinesh, et al. “Stock market prediction using linear regression.”
Electronics, Communication, and Aerospace Technology (ICECA), 2017
International conference of. Vol. 2. IEEE, 2017.

[6] Vincy Joseph, Anuradha Srinivasaraghavan- “Machine Learning”.

[7] Trevor Hastie, Robert Tibshirani, Jerome Friedman- “The Elements of


Statistical Learning”.

[8] Tom M Mitchell- “Machine Learning”

[9] Saleh Hyatt- “Machine Learning Fundamentals”.

36

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