Question

Describe the potential of predictive analytics, in theory, conveying a story with absolute certainty?

Answer 1

• Predictive analytics encompasses a variety of statistical techniques from predictive modelling, machine learning, and data mining that analyze current and historical facts to make predictions about future or otherwise unknown events.

• No matter what line of work you’re in–publishing, healthcare, retail, food service, drug-dealing–your business operates in a vast, swirling matrix of information. How many people are interested in your product? When do they show most interest? How much of your product should you produce? Where, when, and how should you sell it?

  Data crunching giants like IBM and SAP have long mined and analyzed data for businesses, offering predictions about what actions will help their bottom line–“predictive analytics,” to use the industry buzzword. But the cost of such services has typically been so high–a price tag in the millions, if consulting services are added, is not altogether unheard of–as to limit their use to major corporations. Now, for the first time, a few smaller players are promising small and medium-sized businesses that they, too, can use predictive analytics to better forecast what actions will yield a greater profit.