Analysis of the article titled "A predictive analytics primer"

1. A
PREDICTIVE
ANALYTICS
PRIMER

2. We don’t
know what
the future
contains…
But, we can PREDICT IT!!

3. By
using…
Past data
Statistical
Wizardry
Considerate
Assumptions

4. DATA
AND
STATISTICS

5. In Predictive Analytics, the
best asset one can have is
GOOD DATA.
Deciding
what data
is
required,
and
acquiring
it is half
the
battle.

6. Predictive analytics
involve finding
CORRELATIONS
between
INDEPENDENT
variables and the
DEPENDENT
variable
Most analysts use
REGRESSION
ANALYTICS

7. The main quest of
regression analytics is
to find the BEST
MODEL..
Analysts then use the
model or regression
equation to get a score
for the dependent
variable

8. ASSUMPTIONS

9. “The future will
continue to be like
the past.”
Every model is based
on some assumptions,
and the most basic one
is :

10. Faulty and obsolete assumptions can
bring down whole economics…
Assumptions can become
invalid for a variety of
reasons –
• Passage of time
• A key variable was not
included

11. LESSONS
TO THE
MANAGER

12. ANALYSTS use
the data and
the statistics to
create the
model
MANAGERS are
the ones who uses
these models to
promote businesses

13. Managers
should know all
the assumptions
made in the
model, along
with the
consequences if
they become
invalid

14. As the world around us
changes, the
assumptions and
sometimes the models
should also change
with them
Predictive Analytics
is not an isolated
system…

15. Managers Should Be Aware Of..
The Source of the
Data, and it
authenticity
Outliers in the
data distribution,
and their effect
Conditions which
would make the
assumptions
invalid

16. Predictive
analytics is
hard work,
involving
careful
considerations
But it gives us a glimpse of the future,
with great accuracy!

17. References
– https://www.flickr.com/photos/79963992@N04/8232679085/
– https://www.flickr.com/photos/144560973@N04/33962983275/
– https://www.flickr.com/photos/desperately_obvious/5129259519/
– http://www.philippatston.com/assets/_resampled/resizedimage25
0166-Right-Wrong.jpg
– https://www.flickr.com/photos/65488538@N06/6124888044/
– https://financetrain.com/wp-
content/uploads/2010/10/correlation.gif
– https://www.flickr.com/photos/140635085@N05/34711159633/
– http://www.myra.com/sites/default/files/PMandBA.jpg
– https://www.flickr.com/photos/cheyneysan/6612211035/
– https://www.flickr.com/photos/kala69/8558470976/

18. THANK
YOU
Muyeena Akbari Khanzada