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September 16, 2025World Journal of Advanced Research and Reviews

Predictive analytics for pricing strategy in the automobile industry using machine learning models

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Authors

JFJesutofunmi E. FagbamilaAAAbass A. AgbajeGOGaniyu O. Okubadejo

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Overview

Analysis reveals machine learning models effectively improve pricing strategy in the automobile industry, indicating advanced methods may outperform traditional approaches.

Key Points

  • Random Forest achieved a remarkable R² score of 0.92, highlighting the model's predictive accuracy for car prices.
  • A comprehensive feature analysis pinpointed engine capacity, vehicle age, and year of manufacture as critical determinants in pricing.
  • The study implemented state-of-the-art machine learning techniques, including CNNs and thorough hyperparameter tuning, to refine predictions.
  • Incorporating Explainable AI methods like LIME and SHAP increased the interpretability of model outcomes for stakeholders.

Cite This Study

Fagbamila et al. (2024) studied this question.

synapsesocial.com/papers/68d4764731b076d99fa6e25ehttps://doi.org/10.30574/wjarr.2024.24.3.3920
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