Welcome to Predictive Analytics! We've explored bias detection and privacy ethics. Now let's discover how to peek into the future with data.
Predictive analytics helps us forecast what might happen next, turning historical patterns into future insights.
Engagement Message
What's one thing about your business you'd most like your data to predict?
Let's clarify the difference: Descriptive analytics tells us what happened ("Sales dropped 15% last quarter"). Predictive analytics estimates what will happen ("Sales will likely drop another 8% next quarter").
Think of it as the difference between a rearview mirror and a windshield.
Engagement Message
Which type—descriptive or predictive—do you rely on most today?
Predictive analytics works by finding patterns in historical data and projecting them forward. If website traffic always spikes before product launches, we can predict future traffic increases.
The key assumption: past patterns will continue in some form.
Engagement Message
What's one pattern in your data that might predict future outcomes?
Here's when prediction adds real value: when you can act on the forecast. Predicting customer churn is valuable if you can prevent it. Predicting weather is useful if you can adjust inventory.
Without actionable responses, prediction becomes just interesting trivia.
Engagement Message
Think of a prediction that, if available, would alter a key decision—what is it?
But beware the prediction trap! Just because you can predict doesn't mean you should. Predictions require more complex methods, can be less accurate than descriptions, and often give false confidence.
Sometimes "we don't know what will happen" is the most honest answer.
Engagement Message
Can you describe a situation where descriptive analysis beats predictive?
