Predictive Analytics

Definition

Predictive analytics uses statistical methods and models to forecast future outcomes from data. It often includes machine learning, but can also use simpler forecasting approaches. The goal is estimation that informs planning.

Business Context

It is used for demand forecasting, churn risk scoring, fraud risk scoring, and capacity planning. The business value appears when forecasts are linked to actions and measured over time.

Why it Matters

It improves planning and reduces uncertainty in operations.