Methods and techniques Application examples
Posted: Thu Jan 23, 2025 6:52 am
How is predictive analytics different from descriptive and prescriptive analytics?
Descriptive analytics : Focuses on analyzing past data to answer the question, “What happened?” Its goal is to understand historical patterns in the data.
Predictive analytics : Answers the question, “What might happen?” It uses algorithms and big data to make accurate predictions of future events .
Prescriptive analytics : This goes a step further by suggesting specific actions based on the results of predictive analytics. Its goal is to answer the question, “What should we do?”
Analysis Type The main question
Descriptive analytics What happened? Descriptive statistics, data gambling data china visualization Analysis of historical sales results
Predictive analytics What could happen? Machine learning, predictive models Demand forecasts, risk management
Prescriptive Analytics What should we do? Optimization, simulations Planning marketing campaigns
The importance of historical data in predicting the future
At the heart of any predictive analytics lies historical data. It can detect patterns that allow for accurate predictions of future events . For example, banks and insurance companies were among the first to use predictive models to predict the credit risk of their customers.
Descriptive analytics : Focuses on analyzing past data to answer the question, “What happened?” Its goal is to understand historical patterns in the data.
Predictive analytics : Answers the question, “What might happen?” It uses algorithms and big data to make accurate predictions of future events .
Prescriptive analytics : This goes a step further by suggesting specific actions based on the results of predictive analytics. Its goal is to answer the question, “What should we do?”
Analysis Type The main question
Descriptive analytics What happened? Descriptive statistics, data gambling data china visualization Analysis of historical sales results
Predictive analytics What could happen? Machine learning, predictive models Demand forecasts, risk management
Prescriptive Analytics What should we do? Optimization, simulations Planning marketing campaigns
The importance of historical data in predicting the future
At the heart of any predictive analytics lies historical data. It can detect patterns that allow for accurate predictions of future events . For example, banks and insurance companies were among the first to use predictive models to predict the credit risk of their customers.