A comparison between Regression, Classification, Clustering, and Nearest neighbor

A simple comparison between Regression, Classification, Clustering, and Nearest neighbor

Regression: How much should we charge for the new BMW M5?

A regression model would use past sales data on BMWs and M5s to determine how much people paid for previous cars from the dealership, based on the attributes and selling features of the cars sold

Classification: How likely is person X to buy the newest BMW M5?

By creating a classification tree (a decision tree), the data can be mined to determine the likelihood of this person to buy a new M5

Clustering: What age groups like the silver BMW M5?

The data can be mined to compare the age of the purchaser of past cars and the colors bought in the past. From this data, it could be found whether certain age groups

Nearest neighbor: When people purchase the BMW M5, what other options do they tend to buy at the same time?

The data can be mined to show that when people come and purchase a BMW M5, they also tend to purchase the matching luggage

The source can be consult here.