Target Variable

Category: science

The specific outcome or value that the machine learning model is trying to predict.

In a claim, the target variable is "Fraud: Yes/No." In pricing, the target variable is "Expected Loss Amount." You must define this variable with perfect clarity, or your model will learn to predict the wrong objective entirely.

Common Examples

• The entire training effort focused on predicting the target variable of "policy lapse probability" within the next six-month window.
• A clearly defined target variable is the foundation of effective supervised learning, ensuring the math is always aimed at the right goal.