[Term of the Day]: Predictive Modeling
Term of the Day
"Predictive Modeling"
Definition — What is Predictive Modeling?
Predictive modeling, also referred to as predictive analysis/predictive analytics is a process that leverages data and stats to predict future events using historical data and data models. Data modeling is capable of predicting outcomes from TV ratings to business expenditures.
This process has become crucial for every organization as it gives futuristic insights that help maintain a competitive advantage. To be the leader in the business, a business must align the predictive model with its strategic goals.
Predictive modeling has received a lot of attention in recent years due to advances in supporting technology, particularly in the areas of big data and machine learning. According to a 2017 report issued by Zion Market Research, Predictive analytics has captured the support of a wide range of organizations, with a global market projected to reach approximately $10.95 billion by 2022, growing at a compound annual growth rate (CAGR) of around 21 percent between 2016 and 2022.
Check this article to learn more about Predictive modeling.