Question

Predictive analytics in business is an important application of multiple regression analysis. Generally speaking, what is meant by predictive analytics? As a business owner, how could you use regression analysis and predictive analytics to increase your company's sales?

Answer 1

Predictive analysis uses past data and with the help of machine learning tools and artificial inteligence it predicts what will happen in the future. The past data is fed into a model which takes into account patterns and trnds of the past data and when that model is applied in the present scenerio it given a idea about what will happen in the future.

Regression is one of the best tools one can possess for analysis of data. It helps us to understand and quantify the relationship between two or more variables. In business particularly regression is used for optimization and forecasting. Regression helps in the optimization of the manufacturing and delivery process and also provides the manager to predict the demand for the products and further their business.

Customer responses are one of the most important variables used by companies for their growth. The predictive analysis gives us customers responses or purchases. it helps companies to retain and grow their most profitable customers. Airline companies uses this type of analysis to set ticket prices.