LuxDev Data Science Week two assignment
Published: 2023-10-07 12:36:05

**Question 2).**
Let’s say we want to build a model to predict booking prices on Airbnb. Between linear regression and random forest regression, which model would perform better and why?

Determining which model, linear regression or random forest regression, would perform better for predicting booking prices on Airbnb requires careful consideration of the data characteristics and the specific problem at hand. However, here are some general factors to consider when comparing these two models:

Linear Regression:

Linear regression models assume a linear relationship between the input features and the target variable. They are interpretable and can provide insights into the relationships between the predictors and the target variable. Linear regression is suitable when the relationship between the predictors and the target is expected to be linear or can be adequately approximated by a linear function.

Advantages of linear regression:

    Simplicity: Linear regression is straightforward and easy to interpret.
    Interpretable coefficients: The coefficients in linear regression models provide information about the magnitude and direction of the relationships between predictors and the target variable.
    Faster training and prediction: Linear regression models generally have faster training and prediction times compared to more complex models like random forest regression.

Random Forest Regression:

Random forest regression is an ensemble learning method that combines multiple decision tree models. It can capture non-linear relationships and interactions between features, making it more flexible than linear regression. Random forest models are suitable when the relationship between predictors and the target variable is complex and may involve non-linear patterns.

Advantages of random forest regression:

    Non-linearity: Random forest models can capture non-linear relationships and interactions between features, allowing for more flexibility in modeling complex relationships.
    Robustness: Random forest models are generally more robust to outliers and noise in the data compared to linear regression.
    Feature importance: Random forests can provide information about feature importance, which can be useful for understanding the relative contributions of different predictors.

Choosing the better model:

To determine which model would perform better for predicting booking prices on Airbnb, it is important to consider the specific characteristics of the dataset, such as the number of features, the presence of non-linear relationships, and the potential interactions between predictors. Additionally, it is recommended to perform thorough model evaluation and comparison using appropriate metrics, such as mean squared error (MSE) or R-squared, on a validation or test dataset.

Choosing the better model:

To determine which model would perform better for predicting booking prices on Airbnb, it is important to consider the specific characteristics 
of the dataset, such as the number of features, the presence of non-linear relationships, and the potential interactions between predictors. 
Additionally, it is recommended to perform thorough model evaluation and comparison using appropriate metrics, such as mean squared error (MSE) or R-squared, on a validation or test dataset.

After observing both linear and Random forest on the Airbnb dataset sample on Kaggle by Tahir Elfaki with the following output; 
 RMSE for RANDOM FOREST 0.49315003952727654 
 RMSE for Linear Regression: 0.4941517465923999

I conclude that either of the models would work just fine for that particular dataset.