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Target Variables in Predictive Analytics

The target variable in predictive analytics is the main outcome that models aim to predict, categorized as either categorical or numerical. Categorical target variables are used in classification problems, while numerical target variables are used in regression problems. Understanding and correctly selecting the target variable is crucial for the accuracy and performance of predictive models.

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200 views1 page

Target Variables in Predictive Analytics

The target variable in predictive analytics is the main outcome that models aim to predict, categorized as either categorical or numerical. Categorical target variables are used in classification problems, while numerical target variables are used in regression problems. Understanding and correctly selecting the target variable is crucial for the accuracy and performance of predictive models.

Uploaded by

Sandhya Bathini
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Target Variables in Predictive Analytics

What is a Target Variable?

In predictive analytics, the target variable (also known as the dependent variable) is the main outcome or

result you want to predict. It is the value that the model tries to forecast based on other available data (called

features or independent variables).

Types of Target Variables

1. Categorical Target Variable

- Values are categories or labels.

- Used in classification problems.

- Examples: Spam or Not Spam, Disease Present or Not, Product Category (A, B, C)

2. Numerical Target Variable

- Values are continuous numbers.

- Used in regression problems.

- Examples: House Prices, Sales Revenue, Temperature Forecast

Examples of Target Variables by Domain

Healthcare: Patient Survival (Yes/No)

Finance: Loan Default Risk (Yes/No)

Retail: Customer Purchase Amount

Education: Student Exam Scores

Marketing: Email Response (Clicked/Not)

Importance of Target Variable

- It determines the type of machine learning model (classification or regression).

- Accuracy and performance are measured based on how well the model predicts the target.

- The correct selection and understanding of the target variable is critical for building a meaningful and

accurate predictive model.

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