What is predictive analytics?
In this section, you will be introduced to predictive analytics. You will understand its various applications in practice. You will also explore its wide application in different fields, including banking, finance, and healthcare.
Predicting the future has always been a central concern and has captivated humankind for thousands of years, and it’s still a hot topic! Predicting the future helps to identify and exploit opportunities, optimize resource allocation, and prepare better for catastrophes, disasters, and crises. Predictive analytics is a subfield of data analysis that aims to utilize historical data to predict or forecast the future. Now, to embark on our journey of understanding predictive analytics, let’s examine some of its interesting applications.
Applications of predictive analytics
There are enormous applications of predictive analytics in practice. A sample of these applications is shown in Figure 12.1.