What Predictive Analytics Is

Predictive analytics uses historical data to estimate what is likely to happen next, so organizations can make better decisions before events unfold. In this lesson, you will learn how predictive analytics differs from descriptive and diagnostic analytics, what problems it is designed to solve, and the kinds of outcomes it can forecast. You will also see the core ingredients behind a predictive workflow, the role of models and probabilities, and the limits of prediction in real business settings.

By the end of the lesson, you should be able to explain what predictive analytics is in plain language, identify common use cases, and recognize when prediction is appropriate versus when another type of analysis is a better fit.