Practical Predictive Analytics

Step 3 data preparation

As was mentioned in Chapter 1, Getting Started with Predictive Analysis, one purpose of data preparation is preparing an input data modeling file, which can go directly into an algorithm. In theory, the input file will encompass all of the knowledge gained in steps 1 and 2. Ideally, this file will consist of a target variable, all meaningful predictor variables and other identification variables to aid in the modeling process, and any additional variables which would have been created based on the raw data sources. Data preparation, such as the previous steps outlined is an iterative process. Here are some typical steps you might follow when preparing the data:

• Identifying the data sources: These are the critical ...