What are the Key Techniques Used in Predictive Analysis?
Several techniques are commonly used in predictive analysis:
1. Regression Analysis: This technique helps predict the relationship between variables. It is widely used in finance and marketing to forecast sales and customer behavior. 2. Classification: Classification algorithms categorize data into predefined groups. It's useful for detecting fraud and customer segmentation. 3. Time Series Analysis: This technique analyzes data points collected or recorded at specific time intervals to forecast future trends. 4. Clustering: Clustering groups similar data points together. It’s useful for market segmentation and customer profiling. 5. Neural Networks: These are used for complex pattern recognition and can handle vast amounts of data for accurate predictions.