What is Predictive Analytics?
Predictive analytics is an approach that uses data, statistical algorithms and machine learning techniques to identify the likelihood of future outcomes based on historical data. The goal is to go beyond knowing what historically happened to providing an assessment of what will happen in the future (prediction). Predictive analytics can be used to answer questions such as:
- How many units of product X will be sold next month?
- Which asset will fail within the next 75 days?
- Which customers will likely churn in the next 30 days?
- Is this transaction fraudulent?