[scikit-learn] Can y of datasets be increasing/decreasing ratio when train regression model?

[Charles Zheng]

Hi lampahome,

It is a common practice in financial modeling (
https://en.wikipedia.org/wiki/Capital_asset_pricing_model).

[image: image.png]

P_t is price at time t, R_t is "return", which is the variable they are
trying to predict.

Best,

Charles


On Wed, Jan 30, 2019 at 5:43 AM lampahome <pahome.chen at mirlab.org> wrote:

> I found many cases in kaggle to predict the quantity or trends. They all
> set the real quantity as y.
>
> But I have question is that does anyone set the changing ratio as y?
>
> Like:
>
> X     y
> Day1  0.2
> Day2  0.1
> Day3  0.15
> Day4  -0.1
>
> y is the changing ratio compared with previous day.
>
> Why anybody set the real quantity(ex: sales, car numbers...etc) as y
> rather than changing ratio as y?
>
> I want to know it's based on experience or other reasons
>
> thx
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> scikit-learn mailing list
> scikit-learn at python.org
> https://mail.python.org/mailman/listinfo/scikit-learn
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