Analysis of the article "A Predictive Analytics Primer" by Thomas H. Davenport
- 1. ANALYSIS Of the article “A Predictive Analytics Primer” By Thomas H Davenport
- 4. Predictive Analytics “Predict future using data from the past.” Predictive Analytics
- 6. The DATA: Lack of good data is the most common barrier to all of the organizations seeking to employ predictive analytics. Predictive Analytics
- 7. The STATISTICS: Regression analysis in its various forms is the primary tool that organizations use for predictive analytics. Predictive Analytics
- 8. Predictive Analytics nalyst hypothesizes that a set of independent variables (say, gender, income, visits to a website) are statistically correlated. The analyst performs a regression analysis to see just how correlated each variable is. Predictive AnalyticsPredictive AnalyticsPredictive Analytics
- 9. The ASSUMPTIONS: The big assumption in predictive analytics is, “that the future will continue to be like the past.” Predictive Analytics
- 11. Predictive Analytics If your model was created several years ago, it may no longer accurately predict current behavior. The greater the elapsed time, the more likely customer behavior has changed. “Changing time can make assumptions go invalid.”
- 12. Predictive Analytics “Excluded Variable” If the analyst didn’t include a key variable in the model, and that variable has changed substantially over time.
- 13. Predictive Analytics anagers should always ask analysts what the key assumptions are, and what would have to happen for them to no longer be valid. And both managers and analysts should continually monitor the world to see if key factors involved in assumptions might have changed over time.
- 14. Predictive Analytics “Certain questions a manager must ask his analyst.” ● Can you tell me something about the source of data you used in your analysis? ● Are you sure the sample data are representative of the population? ● Are there any outliers in your data distribution? How did they affect the results? ● What assumptions are behind your analysis? ● Are there any conditions that would make your assumptions invalid?