Predictive Analytics- Determine future performance based on current and historical data.

Predictive analytics looks for past patterns to measure the likelihood that those patterns will reoccur. It draws on a series of techniques to make these determinations, including artificial intelligence (AI), data mining, machine learning, modeling, and statistics.

Predictive analytics helps businesses manage inventory, develop marketing strategy and forecast sales.

Predictive Model determine relationships, patterns, and structures in data that are used to draw conclusions as to how changes in the underlying processes that generate the data will change the results.

Use of Predictive Analysis

• Manufacturing: Forecasting is essential in manufacturing to optimize the use of resources in a supply chain.
• Credit scoring: When a consumer or business applies for credit, data on the applicant's credit history and the credit record of borrowers with similar characteristics are used to predict the risk that the applicant might fail to repay any new credit that is approved.
• Marketing: Marketing professionals planning a new campaign look at how consumers have reacted to the overall economy.
• Stock Traders: Active traders look at a variety of historical metrics when deciding whether to buy a particular stock or other asset.
• Fraud detection: Financial services use predictive analytics to examine transactions for irregular trends and patterns.
• Supply chain: Supply chain analytics is used to manage inventory levels and set pricing strategies. This helps businesses proactively identify and address risks, optimize resources and processes, and improve decision-making.
• Human Resources: Predictive analytics can also analyze an employee's performance, skills, and preferences to predict their career progression and help with career development.

Types of Predictive Analysis : Decision Trees, Regression, Cluster Models, Time Series Modeling, Neural Networks

Predictive analytics is good for forecasting, risk management, customer behavior analytics, fraud detection, and operational optimization. Predictive analytics can help organizations improve decision-making, optimize processes, and increase efficiency and profitability.