Predictive Analytics
A branch of data science that uses historical data to predict future events or trends by developing statistical models and machine learning algorithms to analyze large amounts of data and identify patterns, with applications in business decision-making, customer experience improvement, fraud detection, and resource allocation optimization.
Areas of application
- Business decision-making
- Customer experience improvement
- Fraud detection
- Resource allocation optimization
Example
A company uses predictive analytics to forecast sales based on historical sales data and seasonal trends, allowing them to make informed decisions about inventory management and pricing strategies.