Classification and regression problems

There are basically two types of problems that predictive modeling deals with:

  • Classification problems
  • Regression problems

Classification

In some cases, we want to predict which group an observation is part of. Here, we are dealing with a quality of the observation. This is a classification problem. Examples include:

  • The prediction of the species of plants based on morphological measurements
  • The prediction of whether individuals will develop a disease or not, based on their health habits
  • The prediction of whether an e-mail is spam or not

Regression

In other cases, we want to predict an observation's level on an attribute. Here, we are dealing with a quantity, and this is a regression problem. Examples include:

  • The prediction of how much individuals will cost to health care based on their health habits
  • The prediction of the weight of animals based on their diets
  • The prediction of the number of defective devices based on manufacturing specifications
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