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Predictive Analytics Fundamentals

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Clustering

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Clustering is the task of grouping a set of objects in such a way that objects in the same group, called a cluster, are more similar to each other than to those in other groups. In data mining, it's used to discover structure within unlabeled data.

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Regression

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Regression analysis predicts a continuous numeric outcome. In predictive analytics, regression models predict the value of a variable based on other input variables.

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Association Rule Learning

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Association rule learning finds interesting associations and relationships among large sets of data items. This technique is used in market basket analysis to discover rules that indicate the items that frequently co-occur in transactions.

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Support Vector Machine (SVM)

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Support Vector Machine (SVM) is a supervised machine learning algorithm which can be used for both classification or regression challenges. In predictive analytics, it is mostly used for classification problems and works well on both linear and non-linear data.

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Classification

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Classification is the process of predicting the category or class of a given data point. In predictive analytics within data mining, classification algorithms are used to assign categories to data instances based on training data.

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Time Series Analysis

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Time Series Analysis involves methods for analyzing time series data in order to extract meaningful statistics and other characteristics of the data. Predictive analytics use it to forecast future events based on observed temporal sequences.

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Decision Trees

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A Decision Tree is a flowchart-like tree structure where an internal node represents a feature(or attribute), a branch represents a decision rule, and each leaf node represents the outcome. It is used in predictive analytics for classification problems to derive a strategy to reach a particular goal.

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Ensemble Methods

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Ensemble methods use multiple learning algorithms to obtain better predictive performance than could be obtained from any of the constituent learning algorithms alone. It is used in predictive analytics to combine the strengths of different models.

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