A US-based housing company named Surprise Housing has decided to enter the Australian market. The company uses data analytics to purchase houses at a price below their actual values and flip them on at a higher price. For the same purpose, the company has collected a data set from the sale of houses in Australia
The company wants to know:
- Which variables are significant in predicting the price of a house, and
- How well those variables describe the price of a house.
- Determine the optimal value of lambda for ridge and lasso regression.