Top 3 Key Techniques Used in Predictive Analytics

The following are the top three key techniques used in predictive analytics:

• Regression Analysis:
• Purpose: Establish relationships of a dependent variable and one or more independent variables.
• Use Cases: Predict sales based on factors such as price and advertising, or forecasting stock prices.
• Decision Trees:
• Purpose: Utilizes a tree-like model to classify data into different categories.
• Use Cases: Identifies high-risk customers for a bank or segmented customer based on purchasing behavior.
• Neural Networks:
• Purpose: Mimic of the brain to identify complex patterns in data.
• Use Cases: Predict customer churn, image and speech recognition, and fraud based detection.