Predictive Analytics For Dummies, 2nd Edition

Chapter 5

Applying Models

IN THIS CHAPTER

Understanding models

Categorizing models

Introducing the benefits of models

Highlighting relevant case studies and related domains to predictive analytics

Big data is like an engine that drives our lives. It includes everything about us. Predictive analytics can use big data to foresee our future moves and make predictions about our likely actions — especially when we're someone's prospective customers. Hypothetically, a predictive analytics model can know when you're asleep and can predict the time you'll wake up.

Companies are capturing and storing information at every opportunity. They store every purchase you make, every online search you do, every website you visit, and your preferences. Everything is closely monitored and analyzed. This has become the new norm in our lives. Your doctor, your employer, your next-door grocer will be all analyzing data about you soon, if they aren't already.

The rule for using all this data is clear: Whichever company can accurately find patterns in your data, analyze them, and use them effectively, will profit from it.

So what are some of the business implications of using predictive analytics on big data? And how can businesses or organizations make profit or make their own success stories from your data? For that matter, how can you do the same? To clarify that picture, this chapter introduces different ...