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I understand how binary relevance works on a multi-label dataset: the data is split up into L data sets, where L is the number of labels. Each subset has a column where either a 0 or a 1 is assigned to an instance, indicating the presence or absence of that label on that instance. A separate classifier is trained on each data set.

But, in the case of a multi-class multi-label problem, where some labels may take on different, mutually exclusive class values, is each class treated as a separate label, or is the split still done the same way, except that instead of a "0" or "1", the class is assigned in the label column, thus requiring a multi-class classifier/ classification scheme?

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I think binary relevance should be done still in the way that you proposed.

For an overview of different methods for multilabel classification look here: https://journal.r-project.org/archive/2017/RJ-2017-012/RJ-2017-012.pdf I don't know how they could be adapted for multiclass multi-label problems. I would also rather call them multitarget problems.

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