From the course: Data Management Essential Training

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Predictive analytics and modeling

Predictive analytics and modeling

- [Narrator] Another technique we can use in the data analysis phase is predictive analytics and modeling. The main idea here is to take the data we have collected, which tells us about what has happened in the past, and use it to create predictions for what might happen in the future. This analysis relies heavily on identifying trends and patterns within the data sets, and then determining where these trends will lead. If sales have steadily been increasing by a certain percent each month, you should be able to forecast sales for the months ahead, helping to ensure you have enough stock in your stores, for example. There are some common techniques that can be used here, such as decision trees, regression analysis, or even by using machine learning algorithms to find patterns that are hard to identify. There are some challenges though. Something I have mentioned several times already is data quality. If we are going to base predictions on this data, we must ensure that we have done as…

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