Predictive Analysis and Its importance in today's market.

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.

17. Credits
• http://smallbusiness.chron.com/importance-
statistics-management-decision-making-
4589.html
• Compfight.com
• google

18. THANK YOU
SHOURYA SIMHA
VASAVI COLLEGE OF
ENGINEERING