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    Group 5 - Smsma

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    Predictive analytics uses techniques like data mining, statistics, machine learning, and artificial intelligence to predict unknown future events. It has various real-world applications in healthcare, finance, marketing and more. The key steps involve data collection and preprocessing, developing predictive models using algorithms, and evaluating the models' performance on test data. Some challenges include ensuring high quality input data and preventing overfitted models with low generalizability.

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    Group 5 - Smsma

    Uploaded by

    abhilashmba22
    8 views17 pages
    Predictive analytics uses techniques like data mining, statistics, machine learning, and artificial intelligence to predict unknown future events. It has various real-world applications in healthcare, finance, marketing and more. The key steps involve data collection and preprocessing, developing predictive models using algorithms, and evaluating the models' performance on test data. Some challenges include ensuring high quality input data and preventing overfitted models with low generalizability.

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    Predictive analytics uses techniques like data mining, statistics, machine learning, and artificial intelligence to predict unknown future events. It has various real-world applications in healthcare, finance, marketing and more. The key steps involve data collection and preprocessing, developing predictive models using algorithms, and evaluating the models' performance on test data. Some challenges include ensuring high quality input data and preventing overfitted models with low generalizability.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    8 views17 pages

    Group 5 - Smsma

    Uploaded by

    abhilashmba22
    Predictive analytics uses techniques like data mining, statistics, machine learning, and artificial intelligence to predict unknown future events. It has various real-world applications in healthcare, finance, marketing and more. The key steps involve data collection and preprocessing, developing predictive models using algorithms, and evaluating the models' performance on test data. Some challenges include ensuring high quality input data and preventing overfitted models with low generalizability.

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    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 17

    Unveiling the Future :

    PREDICTIVE
    ANALYTICS

    Presented by : Group 5
    Abhilash Hegde
    Divya D
    Deekshitha
    Apoorve
    Jefrin Jijo
    Introduction to
    Predictive Analytics

    Making future predictions about unknown events with the help of techniques from data
    mining, statistics, machine learning, math modeling, and artificial intelligence is known
    as predictive analytics.

    For example, predicting sales of an item (say flowers) in a market for a particular day. If it is
    valentines day, the sales of roses would be high! We can easily say that the sales of flowers
    would be higher on festive days than on regular days.

    The insights from the data include patterns, the relationship among different factors that
    might be previously unknown.
    Why Predictive Analytics?
    1 Data Collection
    Understanding the different sources of data and how to collect relevant information
    is crucial for the success of predictive analytics.

    2 Real-World Application
    By predicting future outcomes, businesses can make more informed decisions,
    optimize processes, and gain a competitive edge in the market.

    3 Exploratory Data Analysis (EDA)


    Exploring and analyzing the data helps to identify patterns, trends, and outliers,
    providing valuable insights for predictive modeling.
    Applications

    Visualization of Data Data Analysis Machine Learning


    Techniques
    Using visual representations like Performing rigorous analysis on
    charts and graphs to explore the dataset to understand its Applying various machine
    patterns and relationships within structure, variables, and learning algorithms to extract
    the dataset. significance for predictive meaningful insights and build
    modeling. predictive models.
    Real World Application of
    Predictive Analytics
    1 Healthcare 2 Finance
    Predictive analytics can be used to In finance, predictive analytics is
    forecast patient outcomes, enhance employed for risk assessment, fraud
    treatment plans, and improve overall detection, and algorithmic trading
    healthcare operations. strategies.

    3 Marketing
    Businesses utilize predictive analytics to optimize marketing campaigns, personalize
    customer experiences, and drive sales growth.
    Data Collection for Predictive
    Analytics
    Digital Footprint Sensor Data
    Collecting information from IoT devices
    Utilizing online and social media data to
    and sensors to monitor and analyze various
    gather insights on consumer behavior and
    aspects of our environment.
    preferences.

    Customer Interactions
    Tracking and analyzing customer interactions across different touchpoints to understand their
    needs and behavior.
    Steps for Predictive Analytics
    Data Preprocessing
    Prepare the dataset by cleaning, transforming, and normalizing it for analysis.

    Model Development
    Develop and train predictive models using algorithms such as regression,
    classification, and clustering.

    Evaluation & Validation


    Assess the model's performance, validate its accuracy, and optimize it for real-world
    application.
    Example Dataset

    Demand (Million Supply (Million


    Date Barrels/Day) Barrels/Day) Price (INR/Liter)
    2023-10-01 20 18 101.98
    2023-11-01 21 19 105.30
    2023-12-01 22 20 102.85
    2024-01-01 20 19 102.38
    2024-02-01 22 20 ?
    Code :
    Output:
    Exploratory Data Analysis (EDA)
    Descriptive Data Visualization Outlier Detection
    Statistics
    Creating visual summaries Identifying and handling
    Using measures like mean, such as histograms, box plots, anomalies that may affect the
    median, and standard and scatter plots to uncover accuracy of predictive models.
    deviation to describe the main underlying patterns.
    features of the dataset.
    Feature Engineering in Predictive
    Analytics
    Feature Creation Dimensionality Reduction

    Generating new features from existing data to Reducing the number of input variables by selecting
    improve the model's predictive performance. the most relevant features for the model.
    Model Selection in Predictive
    Analytics
    1 Regression Models 2 Classification Models
    Used for predicting continuous values, Applied to categorize data into distinct
    such as sales forecasts or temperature classes, like identifying fraud or disease
    predictions. diagnosis.

    3 Ensemble Techniques
    Utilizing multiple models to make predictions for improved accuracy and robustness.
    Challenges & Considerations

    2. Overfitting
    1. Data Quality - Use regularization techniques or feature selection
    - Implement data cleaning techniques such as handling missing methods in machine learning models to prevent overfitting
    values and outliers to ensure the quality of input data. and enhance generalization.

    # Handling missing values


    df = df.dropna() # Drop rows with missing values
    # or from sklearn.linear_model import Ridge
    df['column_name'].fillna(df['column_name'].mean(), model = Ridge(alpha=1.0) # Adjust the alpha
    inplace=True) # Fill missing values with mean parameter for regularization strength
    model.fit(X_train, y_train)
    # Handling outliers
    from scipy.stats import zscore
    df['z_score'] = zscore(df['column_name'])
    df = df[(df['z_score'] < 3) & (df['z_score'] > -3)] # Keep
    data within 3 standard deviations
    Challenges & Considerations

    3. Model Interpretability:
    - Utilize model interpretability tools or techniques like Partial
    Dependence Plots (PDP):values for explaining model predictions
    to stakeholders. PDPs show the relationship between a feature
    and the predicted outcome while keeping other features constant.
    They help in understanding the effect of a single variable on the
    model's prediction.

    from sklearn.inspection import


    plot_partial_dependence
    plot_partial_dependence(model, X_train, features=[0,
    1], grid_resolution=10)
    Conclusion
    In conclusion, predictive analytics empowers organizations to make informed and proactive
    decisions by harnessing the power of data. By utilizing statistical algorithms and machine learning
    models, predictive analytics enables the anticipation of future trends, behaviors, and outcomes. This
    transformative approach helps businesses optimize processes, enhance resource allocation, and
    mitigate risks. Whether applied in finance, marketing, healthcare, or various other domains,
    predictive analytics serves as a strategic tool for gaining a competitive edge and fostering
    innovation. Embracing this data-driven methodology not only enhances operational efficiency but
    also enables organizations to adapt and thrive in an ever-evolving landscape, ultimately leading to
    more informed and successful decision-making.

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