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K-Nearest Neighbors (KNN). □ Simple, but a very powerful classification algorithm. □ Classifies based on a similarity measure. □ Non-parametric. Application of K-Nearest Neighbor (KNN) Approach for Predicting Economic Events: Theoretical Background. This paper analyzes and compares Euclidian distance, Chebychev distance and Manhattan distance function using K-Nearest Neighbor in terms of accuracy,