Predictive analysis
- 3. What is Predictive Analysis? • Predictive analytics is a form of advanced analytics that uses both new and historical data to forecast activity, behaviour and trends.
- 4. Lifecycle of Predictive Analysis
- 5. Why do we need Predictive Analysis?
- 6. • Detecting fraud. As cybersecurity becomes a growing concern, high- performance behavioural analytics examines all actions on a network in real time to spot abnormalities that may indicate fraud, zero-day vulnerabilities and advanced persistent threats.
- 7. • Optimizing marketing campaigns. Predictive analytics are used to determine customer responses or purchases, as well as promote cross-sell opportunities. Predictive models help businesses attract, retain and grow their most profitable customers.
- 8. • Optimizing marketing campaigns • Improving operations • Reducing risk And Also....
- 9. but what do you—a manager, not an analyst—really need to know in order to interpret results and make better decisions? How do your data scientists do what they do?
- 11. The important Factors In Quantitative Analysis • The Data • The Statistics • The Assumptions
- 12. Data Lack of good data is the most common barrier to organizations seeking to employ predictive analytics
- 13. The Statitics • The Statistics: Regression analysis in its various forms is the primary tool that organizations use for predictive analytics.
- 14. • An analyst hypothesizes that a set of independent variables (say, gender, income, visits to a website) are statistically correlated with the purchase of a product for a sample of customers. • The analyst performs a regression analysis to see just how correlated each variable is
- 15. • Using that regression equation, the analyst can then use the regression coefficients—the degree to which each variable affects the purchase behaviour—to create a score predicting the likelihood of the purchase. •
- 16. Assumptions If your model was created several years ago, it may no longer accurately predict current behaviour. The greater the time, the more likely behaviour has changed.
- 18. THANK YOU SHOURYA SIMHA VASAVI COLLEGE OF ENGINEERING