what is predictive analytics

Predictive analytics is the use of data, statistical algorithms, and machine learning techniques to identify the likelihood of future outcomes based on historical data. It is a form of business analytics that applies machine learning to generate a predictive model for certain business applications. Predictive analytics can be used to forecast potential scenarios that can help drive strategic decisions. It is forward-looking, using past events to anticipate the future. Predictive analytics statistical techniques include data modeling, machine learning, AI, deep learning algorithms, and data mining. The accuracy and usability of results will depend greatly on the level of data analysis and the quality of assumptions. Predictive analytics is often defined as predicting at a more detailed level of granularity, i.e., generating predictive scores (probabilities) for each individual organizational element. Predictive analytics is used in a variety of industries, including finance, healthcare, marketing, and retail. Different methods are used in predictive analytics such as regression analysis, decision trees, and neural networks. The goal of predictive analytics is to make predictions about future events and use those predictions to improve decision-making.