Predictive Analytics — more success with statistics
Big Data, Data Mining, Predictive Analytics. These buzzwords are all arount the economic and IT news for some time now. The idea behint those words: Use of statistics, mathematics and modern computer technology to automatically analyze a huge amount of data, recognize patterns and to forecast future events.
Why I write a whole post about this topic?
Because this development is very exciting, and with my previous startup Placedise, I used these techniques to simulate advertising effects and predict their impact myself. For this reason, I want to tell you more about predictive analytics below.
Predictive analytics is a very broad term that describes no specific technology, but rather the idea that’s outlined above. The idea to predict or simulate future events and behavior with historical data from different areas is nothing new. Insurance companies and banks have used statistics for decades to determine credit risk or the credit worthiness of individuals. Given the complexity of these issues, it is not sufficient to simply consider the last 30 bank transfers of a credit applicant. In addition to the residence, or age, numerous complementary statistics are used. If the person has successfully demonstrated a similar application recently, for example, and how likely it is that the loan amount will be refunded…
