Module 1
Module 1
1. Descriptive Analytics
2. Diagnostic Analytics
3. Predictive Analytics
4. Prescriptive Analytics
1. Descriptive Analytics
Predictive analytics uses the gathered data and descriptive and diagnostic
analytics results to tell what is likely to happen in the future on a granular
level
Its use involves forecasting the future, predicting the market trends,
changing customer behaviors, and analyzing competitors to optimize and
build strategies to maximize the business results.
The predictions are made by analyzing the past data, detecting patterns,
casual relationships in the data, and then extrapolating them in the
future.
One of the common applications of predictive analytics is found in
sentiment analysis where all the opinions posted on social media are
collected and analyzed (existing text data) to predict the person’s
sentiment on a particular subject as being- positive, negative or neutral
(future prediction).
Amazon’s recommendation engines are a classic example where on
making one purchase, the engine shows the list of other similar items
that the buyers have purchased.
Techniques used decision trees, neural networks and regression
The most popular tools for predictive analytics include Python, R,
RapidMiner, etc.
4. Prescriptive Analytics