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What Is Predictive Analytics?

Data Mining writ

Predictive analytics is the study of current and historical data to make predictions. Use a mix of advanced mathematical, statistical, and machine learning techniques to analyze data to determine and extrapolate hidden trends.

Many companies and organizations use predictive analytics to guide future decisions. For example, marketers use predictive analytics to determine future sales of their products, weather stations use it to predict the weather, and stockbrokers use it to maximize profits from buying and selling.

Businesses use predictive analytics to gain actionable insights, adopt more strategic solutions, improve decision-making capabilities, and quantify business growth based on interpreted data.

The predictive analysis intends to make better decisions regarding the future, that is, to propose preventive measures before a complex situation or to take better advantage of the circumstances, as the case may be.

One of its most common uses is when a bank or financial institution makes a credit diagnosis of a person: the credit bureau has a rating system that gives a score to the financial history of someone who wishes to obtain a loan or make a purchase in installments. Based on the recorded behavior, you receive a score indicating how likely you will be able to pay on time.

Types Of Predictive Analytics

  • Classification model
  • Regression model
  • Pooling model
  • Forecast model
  • Outliers model
  • Time series model

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Search Terms For Predictive Analytics

  • Predictive analytics
  • Predictive analytic techniques
  • Predictive analytic tools
  • Predictive analytic applications.
  • Predictive analytic challenges

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