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EDA: We used linear regression model to identify the most significant factors on which the change in expenditure is dependent.
Model: We used time series linear regression model to predict the household expenditure based on the above identified significant factors. Made model on both yearly basis and quarterly basis and predicted.
Used Auto Arima as another approach to make predictions.
Details of Training data, test data, predicted variables and features have been mentioned in the article now.
In Linear model we identify the linearity between the variables and in ARIMA model we use historical data to predict the future values.