Target Variable
- The target variable is the outcome a model seeks to predict or explain and is influenced by independent variables.
- Choose the target based on the research question or business problem you are addressing.
- Common modeling methods used to predict or explain a target include linear regression, logistic regression, decision trees, and random forests.
Definition
Section titled “Definition”A target variable is a variable that we want to predict or explain in a statistical model. It is also known as the dependent variable because it depends on the values of the independent variables in the model.
Explanation
Section titled “Explanation”The value of the target variable is influenced by the values of the independent variables. In a statistical model, independent variables are the inputs or predictors thought to affect the target. Models are built to estimate the relationship between independent variables and the target variable so the target can be predicted or explained from observed inputs.
Examples
Section titled “Examples”House price
Section titled “House price”If we want to predict the price of a house based on its size, location, and number of bedrooms, the price of the house is the target variable. The size, location, and number of bedrooms are the independent variables because they are the variables that we think have an effect on the price of the house.
Marketing campaign success rate
Section titled “Marketing campaign success rate”If we want to predict the success rate of a marketing campaign based on the target audience, the type of marketing material used, and the budget of the campaign, the success rate of the marketing campaign is the target variable. The target audience, the type of marketing material used, and the budget of the campaign are the independent variables because they are the variables that we think have an effect on the success rate of the marketing campaign.
Use cases
Section titled “Use cases”- The choice of the target variable depends on the research question or the business problem being addressed.
- Example: if predicting the success rate of a marketing campaign, the success rate is the target variable.
- Example: if explaining the factors that influence the price of a house, the price is the target variable.
Notes or pitfalls
Section titled “Notes or pitfalls”- It is important to carefully select the target variable because it is the variable that we are trying to explain or predict.
Related terms
Section titled “Related terms”- Independent variable
- Dependent variable
- Linear regression
- Logistic regression
- Decision trees
- Random forests