This document discusses predictive analysis and the challenges, statistics, assumptions, and relevance to managers. It introduces the author and defines predictive analysis as using past data and statistical methods to predict the future. The main challenges are lack of good data and unique identifiers. Regression analysis is commonly used to correlate attributes and predict likelihoods. The key assumption is that the future will be like the past, but this can be invalidated over time if assumptions become irrelevant. Predictive analytics allows managers to proactively address opportunities and losses.

1. Predective Analysis

2. Hello!
I am Vikrant Narayan
Data Analytics enthusiast
You can find me at @vikrant.m.narayan@gmail.com
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3. “ The Holy Grail of marketing is to
proactively pounce upon every
individual customer opportunity by
predicting before hand who will
respond and pre-emptively
intervene each customer loss by
predicting who will defect
- Dr.Eric Siegel
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4. What does it mean?
● It means there is a way to predict the future
using data from the past.
● It is normally done with a lot of past data, a
little statistical wizardry, and some
important assumptions.
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5. Challenges
● Lack of good data is the most common
barrier to organizations seeking to employ
predictive analytics.
● It is really hard to create an accurate
database with unique IDs.
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7. The Statistics
● Regression analysis in its various forms is
the primary tool that organizations use for
predictive analytics.
● The analyst performs a regression analysis
to see just how correlated each attribute is
with every other attribute.
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8. The Statistics
● Using that regression equation, the analyst can then
use the regression coefficients to create a score
predicting the likelihood of an event occurring.
● It’s quite likely that the high scoring events will
happen.
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10. The Assumptions
● Every predictive model has its own
assumptions.
● The big assumption in predictive analytics is
that the future will continue to be like the
past.
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11. The Assumptions
● It is based on the notion that people establish strong
patterns of behaviour that they usually keep up over
time.
● However, the most common reason for invalidation
of assumptions is time.
● The assumptions made have to be relevant to the
contemporary situation.
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13. Relevance to managers
● Managers will feel more comfortable working with
and communicating with others in your organization
about the results and recommendations from
predictive analytics.
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Thank You!