VILLOTICA, MARY KATE M.

BFN
3201_2M

1) What is Predictive Analytics?

The application of statistics and modeling tools to create predictions about future
events and performance is referred to as predictive analytics. Predictive analytics
examines current and past data patterns to see if they are likely to repeat
themselves. This enables businesses and investors to re-allocate their resources in
order to take advantage of potential future developments. Predictive analytics can
also be utilized to boost operational efficiency and lower risk.
● Predictive Analytics Definition. (2021, June 30). Investopedia.https://www.investopedia.com/terms/p/predictive-analytics.asp

2) What are the three different types of predictive analytics?

Businesses utilize three different sorts of analytics to make decisions. The
descriptive analytics, which tell us what has actually happened; and predictive
analytics, which tell us what will happen in the future. Finally, there's predictive
analytics, which shows us what might happen. Prescriptive analytics tells us what
we should do in the future.
● Descriptive, predictive and prescriptive: three types of business analytics. (2021a, October 22). The University of Bath.
https://online.bath.ac.uk/content/descriptive-predictive-and-prescriptive-three-types-business-analytics#:%7E:text=There%20are
%20three%20types%20of,should%20happen%20in%20the%20future.

3) How do predictive analytics help decision- makers in business?

Corporate managers can optimize internal business processes, recognize upcoming
consumer trends, monitor emerging risks, and establish mechanisms for
improvement by incorporating predictive analysis models into their core strategy.
As a result of driving analytical transformations, businesses will acquire a
competitive advantage and remain at the forefront of digital disruption.
● Dixon, M. (2021, November 4). Why use predictive analysis models for better decision-making. Selerity.
https://seleritysas.com/blog/2020/11/17/why-use-predictive-analysis-models-for-better-decision-making/#:%7E:text=By
%20embedding%20predictive%20analysis%20models,and%20build%20mechanisms%20for%20improvement.

4) Differentiate Predictive Analytics from Predictive Modeling

The difference between predictive analytics and predictive modeling is that in
predictive analytics, they define the project outcomes, deliverables, the scope of
the effort, business objectives, identify the data sets that are going to be used,
while in predictive modeling, they gather data from all the sources to extract
needful information by cleansing operations to remove noisy data so that
prediction can be accurate.
● Descriptive, predictive and prescriptive: three types of business analytics. (2021, October 22). The University of Bath.
https://online.bath.ac.uk/content/descriptive-predictive-and-prescriptive-three-types-business-analytics#:%7E:text=There%20are
%20three%20types%20of,should%20happen%20in%20the%20future.
VILLOTICA, MARY KATE M. BFN
3201_2M

5) Differentiate Predictive Analytics from Machine Learning

In order to anticipate the future, predictive analytics employs complex
mathematics to evaluate trends in current and historical data. Machine learning is a
predictive modeling technique that automates the process by producing training
algorithms that look for patterns and behaviors in data without being explicitly
instructed what to look for.
● Tucci, L. (2021, November 12). Predictive analytics vs. machine learning. SearchEnterpriseAI.
https://www.techtarget.com/searchenterpriseai/feature/Machine-learning-and-predictive-analytics-work-better-together#:%7E:text=As
%20noted%2C%20predictive%20analytics%20uses,told%20what%20to%20look%20for.

6) What is the significance of descriptive analytics in the application of predictive

analytics?
Descriptive analytics aids firms in comprehending what has occurred thus far.
Companies can explain why something happened and forecast potential future
events and actions by combining descriptive analytics with diagnostic, predictive,
and prescriptive analytics.
● Descriptive, predictive and prescriptive: three types of business analytics. (2021a, October 22). The University of Bath.
https://online.bath.ac.uk/content/descriptive-predictive-and-prescriptive-three-types-business-analytics#:%7E:text=There%20are
%20three%20types%20of,should%20happen%20in%20the%20future.

7) What is the difference between prescriptive and predictive analytics?

The outcome of the investigation distinguishes predictive analytics from
prescriptive analytics. Predictive analytics gives you the raw data you need to
make informed decisions, whereas prescriptive analytics gives you data-backed
decision options to compare and contrast. Both are viable choices, but prescriptive
maintenance is the better option for extracting the most value from the trillions of
lines of data generated every day by the aviation sector. When you combine them,
you can get a much clearer picture.
● E. (2021a, December 7). Predictive vs Prescriptive Analytics. Proponent. https://www.proponent.com/predictive-analytics-vs-
prescriptive-analytics/#:%7E:text=So%2C%20the%20difference%20between%20predictive,can%20weigh%20against%20one
%20another.

8) How does Business Intelligence differ from Predictive Analytics?

The main distinction between business intelligence and data analytics is that data
analytics is more focused on future predictions and trends, whereas BI assists
individuals in making decisions based on historical data.
● Ofori-Boateng, C. (2021, December 10). Data Analytics Versus Business Intelligence -- And The Race To Replace Decision Making
With Software. Forbes. https://www.forbes.com/sites/forbestechcouncil/2019/06/21/data-analytics-versus-business-intelligence-and-
the-race-to-replace-decision-making-with-software/?sh=5b1164c4612b
VILLOTICA, MARY KATE M. BFN
3201_2M

9) Give the difference of forecasting from Predictive Analytics?

Forecasting is when we predict the behavior of "Lots" of individuals
(usually consumers) over "Long" periods of time. Predictive analytics forecasts
the behavior of a single person (usually a client) over a "short" period of time.
● Collie, R. (2019, June 3). The Difference Between Forecasting & Predictive Analytics. P3 Adaptive.
https://p3adaptive.com/2017/08/difference-forecasting-predictive-analytics/#:%7E:text=Forecasting%20is%20when%20we
%20anticipate,on%20a%20%E2%80%9CShort%E2%80%9D%20timeline.

10) What is the role of analytics in the field of business?

Businesses can use business analytics to make better, more informed decisions and
achieve a range of objectives. Businesses may better understand consumer
behavior, acquire insight into their competition, identify market trends, measure
progress against goals, and optimize operations by employing data.
● Villanova University. (2021, September 29). The Importance of Business Analytics.
https://taxandbusinessonline.villanova.edu/blog/the-importance-of-business-analytics/#:%7E:text=Business%20analytics%20can
%20help%20companies,Gain%20insight%20into%20their%20competitors