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  • Classification
    • predicts categorical class labels (discrete or nominal)
    • classifies data (constructs a model) based on the training set and the values (class labels) in a classifying attribute and uses it in classifying new data
  • Numeric Prediction
    • models continuous-valued functions, i.e., predicts unknown or missing values
  • Typical applications
    • Credit/loan approval:
    • Medical diagnosis: if a tumor is cancerous or benign
    • Fraud detection: if a transaction is fraudulent
    • Web page categorization: which category it is

Prediction Problems: Classification vs. Numeric Prediction

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