Implementation of the K-Nearest Neighbors (KNN) Regressor Method to Predict Toyota Used Car Prices
Abstract
The development of the automotive industry in Indonesia has experienced significant growth in recent decades, especially in the used car market segment. One of the used car brands that has high demand is Toyota, because it has a reliable reputation and quality. However, there are challenges that are often faced by sellers and buyers of used cars, namely in determining prices correctly and accurately. Incorrect pricing can be detrimental to one party, either the price is too high or too low. Prices that are too high can slow down the turnover of goods in the market. While low prices can cause sellers to experience losses. The purpose of this study is to help find good performance in determining the price of used Toyota cars. This study will use one of the Machine Learning methods, namely K-Nearest Neighbors Regressor. The KNN method is one method that can be used for classification and regression. In addition, this algorithm is a simple algorithm and can provide accurate prediction results based on its proximity to existing data. This study uses selected relevant features, namely model, year, kilometer, tax, mpg, and cc. The results of this study obtained MAE = 3.31686, MSE = 26.43640, RMSE = 5.14163, and R2-Score = 0.99501 using 90:10 data division and k = 1. This proves that KNN Regressor is an effective method in predicting the price of used Toyota cars. Therefore, the K-Nearest Neighbors (KNN) Regressor method is able to provide a fairly accurate price estimate with a minimal error rate.
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References
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