Car Price Predicting Model

CS (AI – ML)

(Roll. No. - 2101321530003, Name – Project Supervisor/Guide Name –

Aditya Mishra Mrs. Rachana Singh Sisodia
Roll. No. - 2101321530008, Name –
Anuj Mishra)

Greater Noida Institute of Technology, Greater Noida

Dr. A.P.J. Abdul Kalam Technical University, Lucknow

October, 2022

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 Car Price Predicting Model

PROJECT SYNOPSIS
For

BACHELOR OF TECHNOLOGY

(Roll No.- 2 1 0 1 3 2 1 5 3 0 0 0 3 , SUPERVISOR/GUIDE NAME-

Name of Student- Aditya Mishra) Mrs. Rachana Singh Sisodia
(Roll No.- 2 1 0 1 3 2 1 5 3 0 0 0 7 ,
Name of Student- Anuj Mishra)

Greater Noida Institute of Technology, Greater Noida

D
Dr. A.P.J. Abdul Kalam Technical University, Lucknow

October, 2022

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 Index
a. Cover Page
b. Declaration
c. Acknowledgement
d. Abstract
e. Index
1. Introduction
1.1. Problem Statement
1.2. Scope of Project
2. Tools/Environment Used
3. Analysis Document
3.1. E-R diagrams/Class diagrams/any related diagrams
3.2. Data flow diagrams/other similar diagrams,
.Limitations of the Project
4. Result and Future Scope of the Project

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 Declaration
I hereby declare that this project work entitled “Car Price Predicting Model”
has been prepared by me during the year 2020 – 21 under the guidance of Mrs.
Rachana Singh Sisodia, Department of CS (AI – ML), GNIOT, Greater Noida in the
partial fulfillment of Btech degree prescribed by the college.

I also declare that this project is the outcome of my own effort, that it has not been
submitted to any other university for the award of any degree.

Date: 10/10/2022

Aditya Mishra
2101321530003
Anuj Mishra
2101321530007

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 Acknowldegement

I have taken efforts in this project. However, it would not have been possible without the kind
support and help of many individuals and organizations. I would like to extend my sincere thanks
to all of them.

I am highly indebted to Mrs. Rachana Singh Sisodia for their guidance and constant supervision
as well as for providing necessary information regarding the project & also for their support in
completing the project.
I would like to express my gratitude towards my parents & member of GNIOT for their kind co-
operation and encouragement which help me in completion of this project.
I would like to express my special gratitude and thanks to industry persons for giving me such
attention and time.
My thanks and appreciations also go to my colleague in developing the project and people who
have willingly helped me out with their abilities.

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 Intoduction
What is machine learning?
Machine learning (ML) is a type of artificial intelligence (AI) that allows software applications
to become more accurate at predicting outcomes without being explicitly programmed to do so.
Machine learning algorithms use historical data as input to predict new output values.

Recommendation engines are a common use case for machine learning. Other popular uses
include fraud detection, spam filtering, malware threat detection, business process
automation (BPA) and Predictive maintenance.

Why is machine learning important?

Machine learning is important because it gives enterprises a view of trends in customer behavior
and business operational patterns, as well as supports the development of new products. Many of
today's leading companies, such as Facebook, Google and Uber, make machine learning a central
part of their operations. Machine learning has become a significant competitive differentiator for
many companies.

What are the different types of machine learning?

Classical machine learning is often categorized by how an algorithm learns to become more
accurate in its predictions. There are four basic
approaches:supervised learning, unsupervised learning, semi-supervised learning and
reinforcement learning. The type of algorithm data scientists choose to use depends on what type
of data they want to predict.

 Supervised learning: In this type of machine learning, data scientists supply

algorithms with labeled training data and define the variables they want the algorithm
to assess for correlations. Both the input and the output of the algorithm is specified.

 Unsupervised learning: This type of machine learning involves algorithms that train
on unlabeled data. The algorithm scans through data sets looking for any meaningful

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 connection. The data that algorithms train on as well as the predictions or
recommendations they output are predetermined.

 Semi-supervised learning: This approach to machine learning involves a mix of the

two preceding types. Data scientists may feed an algorithm mostly labeled training
data, but the model is free to explore the data on its own and develop its own
understanding of the data set.

 Reinforcement learning: Data scientists typically use reinforcement learning to teach

a machine to complete a multi-step process for which there are clearly defined rules.
Data scientists program an algorithm to complete a task and give it positive or
negative cues as it works out how to complete a task. But for the most part, the
algorithm decides on its own what steps to take along the way.
How does supervised machine learning work?
Supervised machine learning requires the data scientist to train the algorithm with both labeled
inputs and desired outputs. Supervised learning algorithms are good for the following tasks:

 Binary classification: Dividing data into two categories.

 Multi-class classification: Choosing between more than two types of answers.

 Regression modeling: Predicting continuous values.

 Ensembling: Combining the predictions of multiple machine learning models to

produce an accurate prediction.

Artificial Intelligence is an integral part of all major e-commerce companies today.

With the evolution of the information industry and extensive research in the field of
AI in the past two decades, businesses have started to explore the ways to automate
various activities using state of the art Machine Learning algorithms and Deep Neural
Networks. Many IT giants and start-ups have already taken a big leap in this field and
have dedicated teams and resources for research and development of cutting edge AI
applications. Online retail platforms today are extensively driven by AI-powered
algorithms and applications. Activities ranging from inventory management and

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 quality checking at the warehouse to product recommendation and sales demographics
on the website, all employ machine learning at various scales.

What is price forecasting and how is it done

Price forecasting is predicting a commodity/product/service price by evaluating various factors
like its characteristics, demand, seasonal trends, other commodities’ prices (i.e. fuel), offers from
numerous suppliers, etc.

Price forecasting may be a feature of consumer-facing travel apps, such as Trainline or Hopper,
used to increase customer loyalty and engagement. At the same time, other businesses may also
use information about future prices. Entrepreneurs may need to define an optimal time to buy a
commodity to adjust prices of products or services that require a commodity (lumber, coffee,
gold), or evaluate the investment appeal of fixed assets.

Price prediction can be formulated as a regression task. Regression analysis is a statistical

technique used to estimate the relationship between a dependent/target variable (electricity price,
flight fare, property price, etc.) and single or multiple independent (interdependent) variables
AKA predictors that impact the target variable. Regression analysis also lets researchers
determine how much these predictors influence a target variable. In regression, a target variable
is always numeric.

In general, price forecasting is done by the means of descriptive and predictive analytics.

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 ML problem
A Car company has provided user-inputted text descriptions of its products,
including details like product category name, brand name, item condition and
other required data or feature of a car. Using this data, we have to come up
with a model that predicts the price of a car listed on car company as
accurately as possible. This looks like a standard regression problem.

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 Tools/Environment Used

Performance metrics and Business constraints

We must have a yardstick to measure how good or bad our model’s performance is. In machine

learning terminology, we call this yardstick performance metric or simply metric. There are

various metrics to measure the performance of a regression model, e.g. mean absolute error,

mean squared error, mean squared logarithmic error, maximum residual error, median absolute

error, coefficient of determination(R²), etc.

For this problem, Kaggle uses Root Mean Squared Logarithmic Error(RMSLE). Lesser the

RMSLE, better is our model. RMSLE is calculated as

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 Analysis Document
1.

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 Data Overview
2.

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 Result
We will built a Price predicting module based on supervised machine learning, with
the help of various regression tools.

Though this is the most simple model we’ve to built, the final predictors still

seem to have high correlations. One can go ahead and remove some of these

features, though that will affect the adjusted-r2 score significantly.

Thus, for now, the final model consists of the 7 variables mentioned above.

Future Work
 Using deep learning was productive and yielded a very good score on test data. More
complex models such as LSTMs and Convolutional Neural Nets can be tried.
 We can experiment with more complex MLPs by adding additional layers and larger
number of units in hidden layers.
 Other vectorization schemes such as Wordbatch can be experimented with ML
models.
 Regression models like FTRL and FM_FTRL can also be tried.

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 Future Scope

The scope of Machine Learning is not limited to the investment sector. Rather, it is expanding
across all fields such as banking and finance, information technology, media & entertainment,
gaming, and the automotive industry.

What is the scope of data science in future? Especially in a developing country like India, there is
scope for huge data-related operations such as data scientists, data analytics, big data engineers,
big data managers, and data architects. Take up this Advanced Certification in Data Science and
AI to make a lucrative career as a data scientist in India.

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