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Predictive Analytics Process Overview

Predictive analytics involves using statistical models, machine learning, and AI to forecast future outcomes by analyzing historical and current data. The process includes defining objectives, data collection, preprocessing, exploratory analysis, model selection, training, evaluation, deployment, and ongoing monitoring. Key techniques include regression, decision trees, and neural networks, with a focus on maintaining model accuracy over time.

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26 views13 pages

Predictive Analytics Process Overview

Predictive analytics involves using statistical models, machine learning, and AI to forecast future outcomes by analyzing historical and current data. The process includes defining objectives, data collection, preprocessing, exploratory analysis, model selection, training, evaluation, deployment, and ongoing monitoring. Key techniques include regression, decision trees, and neural networks, with a focus on maintaining model accuracy over time.

Uploaded by

sreeharir8831
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

Module 5

Predictive Analytics
• Predictive analytics is a data analysis process that uses statistical
models, machine learning, and artificial intelligence to forecast future
outcomes.

• It analyzes historical and current data to identify patterns and trends


that can predict future behaviors.
Predictive Analytics Process
Predictive Analytics Process

1. Define the Objective


2. Data Collection
3. Data Preprocessing
4. Exploratory Data Analysis (EDA)
5. Model Selection
6. Model Training
7. Model Evaluation
8. Model Deployment
9. Monitoring & Maintenance
Predictive Analytics Process
[Link] the Objective:
Clearly understand the business problem you're
trying to solve, such as predicting customer
churn, future sales, or equipment failure.
Predictive Analytics Process

2. DataCollection:
Gather historical data relevant to the
objective. This could include structured
data (like transaction records) or
unstructured data (like social media
comments).
Predictive Analytics Process
3. DataPreprocessing:
[Link] the data by handling missing values,
removing duplicates, and addressing
inconsistencies.
[Link] data transformation (normalization,
aggregation) and feature engineering
(creating new variables) to improve the
model's accuracy.
Predictive Analytics Process
4. Exploratory Data Analysis (EDA):
➢Analyze the dataset to understand patterns,
trends, and relationships between variables.

➢Visualizations (charts, graphs) and statistical


methods help identify key predictors for the
model.
Predictive Analytics Process
5. Model Selection:
[Link] appropriate predictive modeling
techniques based on the problem (e.g., regression,
decision trees, neural networks).
[Link] common algorithms used in predictive
analytics are:
a) Linear/Logistic Regression
b) Decision Trees/Random Forests
c) Support Vector Machines (SVM)
d) Neural Networks
e) Time Series Forecasting models
Predictive Analytics Process

6. Model Training:
[Link] the data into training and testing
sets.
[Link] the predictive model using the
training data to recognize patterns and
make predictions.
Predictive Analytics Process
7. Model Evaluation:
Evaluate the model's performance using
the test data.

Metrics like accuracy, precision, recall, and


RMSE (Root Mean Square Error) help
assess its predictive power.
Predictive Analytics Process
8. Model Deployment:
Once the model is validated, deploy it in the
business environment to make real-time
predictions or automate decision-making
processes.
Predictive Analytics Process
9. Monitoring & Maintenance:
[Link] monitor the model’s
performance as real-world data changes
over time.

[Link] or retrain the model periodically


to maintain accuracy and relevance.

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