Predictive Modeling Quiz 2023 Graded A+

Business Analytics - ANSWER-the use of data analysis and computer technology to make better business decisions 3 Key Goals to Business Analytics - ANSWER-1. discover unknown unknowns in data 2. obtain actionable insight 3. communicate business data stories 3 sections of Business Analytics - ANSWER-1. Descriptive 2. Prescriptive 3. Predictive Descriptive Analytics - ANSWER--uses data to understand past and present -summarize data into meaningful charts and reports -Typical questions: How much did we sell in each region? What was our revenue and profit last quarter? Predictive Analytics - ANSWER--analyzes past performance in an effort to predict the future -detecting patterns or relationships, and then extrapolating these relationships forward in time -Typical questions: What will happen if demand falls by 10% or if supplier prices go up 5%? What do we expect to pay for fuel over the next several months? Prescriptive Analytics - ANSWER--uses optimization techniques to identify the best alternatives to minimize or maximize some objective -Typical question: What is the best way of shipping goods from our factories to minimize costs Unsupervised Learning - ANSWER-- the model is not provided with the correct results during the training - different types of clustering Supervised Learning - ANSWER--training data includes both the input and the desired result -for some examples the correct results (targets) are known and are given in input to the model during the learning process (Neural Networks and Decision Trees) Training Set - ANSWER-set of data used to discover potential predictive relationships Test Set - ANSWER-used to assess the strength and utility of a predictive relationship Data Mining - ANSWER-- non-trivial extraction of implicit, previously unknown and potentially useful information from data - exploration & analysis, by automatic or semi-automatic means, of large quantities of data in order to discover meaningful patterns