Discussed what is Prescriptive Analytics, comparison between Descriptive and Prescriptive Analytics, process, methods and tools. A report presentation conducted at University of East - Manila, Philippines dated July 6, 2017.

1. PREDICTIVE
ANALYTICS
by:
For-Ian V. Sandoval

2. Predictive Analytics
Predictive analytics is an area of data mining that
deals with extracting information from data and
using it to predict trends and behavior patterns.
Often the unknown event of interest is in the future,
but predictive analytics can be applied to any type of
unknown whether it be in the past, present or future.

3. How Descriptive Analytics and Predictive Analytics Compare

4. Predictive Analytics Process
Model
Verification
Theoretical
Model
Treatments +
Controls + Error
= Response
Domain
knowledge,
1st principles,
experience
Pre-existing
data

5. • Regression:
Predicting output variable using its cause-effect
relationship with input variables. OLS Regression, GLM,
Random forests, ANN etc.
• Classification:
Predicting the item class. Decision Tree, Logistic
Regression, ANN, SVM, Naïve Bayes classifier etc.
• Time Series Forecasting:
Predicting future time events given past history. AR, MA,
ARIMA, Triple Exponential Smoothing, Holt-Winters etc.
Common Predictive Analytics Methods

6. • Association rule mining:
Mining items occurring together. Apriori Algorithm.
• Clustering:
Finding natural groups or clusters in the data. K-means,
Hierarchical, Spectral, Density based EM algorithm Clustering
etc.
• Text mining:
Model and structure the information content of textual
sources. Sentiment Analysis, NLP
Common Predictive Analytics Methods

7. Predictive Analytics Tools in Market