What is analytics?
It involves the processes, technologies, frameworks, and algorithms used to extract meaningful insights from raw data. It transforms unprocessed data into useful information by filtering and processing.
What are the goals of analytics?
1- Prediction: Forecasting outcomes, such as detecting fraud or predicting weather.
2- Pattern Recognition: Identifying trends, like the most visited website pages.
3- Relationship analysis: Finding correlations, such as similar products or patient data.
What are the types of analytics?
1- Descriptive: Summarizing past data to answer “What has happened?”
2- Diagnostic: Analyzing past data to determine “Why did it happen?”
3- Predictive: Forecasting future events to answer “What is likely to happen?”
4- Prescriptive: Recommending actions to answer “What can we do to make it happen?”
What is the benefit of descriptive analytics?
It provides valuable summaries of the data to make informed decisions.
What are the common statistical functions used in descriptive analytics?
1- Counts
2- Maximum and Minimum
3- Mean/Average
4- Top-N
5- Percentage
What is the benefit of diagnostic analytics?
Identifying patterns that lead to specific outcomes, helping organizations prevent future issues and improve performance.
Predictive analytics relies on predictive models that are trained on existing data to learn patterns and trends. How to ensure that the model is accurate?
The accuracy of the model depends on the quality and volume of the data used for training. Therefore, the model must be validated with existing data.
What are some typical approaches in training models?
Splitting the data into training and test sets, 75% for training and 25% for testing.
What is the benefit of prescriptive analytics?
It helps decision-makers choose the best option from multiple alternatives by predicting the impact of different actions.
