A novel decision fusion approach for sale price prediction using Elastic Net and MOPSO

TL;DR

This paper presents a new decision fusion method combining Elastic Net and MOPSO to improve sale price prediction accuracy by selecting relevant variables and balancing multiple objectives, validated on real datasets.

Contribution

It introduces a novel decision-level fusion approach using Elastic Net and MOPSO for feature selection and optimization in price prediction tasks.

Findings

The proposed method outperforms existing models in accuracy.

It effectively reduces irrelevant variables and improves prediction metrics.

Validated on real datasets with superior results.

Abstract

Price prediction algorithms propose prices for every product or service according to market trends, projected demand, and other characteristics, including government rules, international transactions, and speculation and expectation. As the dependent variable in price prediction, it is affected by several independent and correlated variables which may challenge the price prediction. To overcome this challenge, machine learning algorithms allow more accurate price prediction without explicitly modeling the relatedness between variables. However, as inputs increase, it challenges the existing machine learning approaches regarding computing efficiency and prediction effectiveness. Hence, this study introduces a novel decision level fusion approach to select informative variables in price prediction. The suggested metaheuristic algorithm balances two competitive objective functions, which are defined to improve the prediction utilized variables and reduce the error rate simultaneously. To generate Pareto optimal solutions, an Elastic net approach is employed to eliminate unrelated and redundant variables to increase the accuracy. Afterward, we propose a novel method for combining solutions and ensuring that a subset of features is optimal. Two various real datasets evaluate the proposed price prediction method. The results support the suggested superiority of the model concerning its relative root mean square error and adjusted correlation coefficient.