Predictive analytics is a type of decision making tool that is based on understanding the future. Predictive analytics is based on probabilities and uses statistics and modeling to determine future performance based on current and past data through the identification of patterns and relationships between data sets.
By using these types of analytics, business can look at data and patterns to determine if those patterns will emerge again, giving businesses actionable insights to take advantage of possible future events.
There are several types of predictive analytics methods including:
- Ordinary least squares
- Generalized linear models
- Logistic regression
- Random forests
- Decision trees
- Neural networks
- Multivariate adaptive regression splines (MARS)
Other types of analytic models include:
- Prescriptive Analytics
- Descriptive Analytics
In Data Defined, we help make the complex world of data more accessible by explaining some of the most complex aspects of the field.
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