Empirical analysis of regression techniques by house price and salary prediction

Abstract

Regression analysis is extensively used for prediction and prognostication, and its use has substantial overlap with the domain of machine learning. The main objective of this paper is to compare the performance of two regression techniques namely Simple Linear Regression (SLR) and Multiple Linear Regression (MLR) algorithms by two cases: predicting the salary of employees after certain years and predicting the prices of real estates. An employee's salary depends on numerous factors, such as total employee experience, certifications, and overall experience as a lead and manager. The factors in predicting house prices are the area of land (sqft_living), condition, waterfront, number of bedrooms, and so on. The dataset used in this experiment is an open-source dataset from KaggleInc. The algorithms were compared using parameters like R-squared value, Mean absolute error (MAE), Mean Squared Error (MSE), Median Absolute Error (MDAE), Variance Score, and Root Mean Square Error (RMSE). Results have shown that MLR provides the better efficiency in comparison to SLR.