MIS 436 Lecture 3: Introduction to Predictive Analytics

• School: Iowa State University
• Department: Management Information Systems
• Course: MIS 436
• Professor: Liu Peng

Document Summary

Prediction in big business the destiny of assets: big business secures a killer competitive stronghold by predicting the future destiny and value of individual assets, people operate with beliefs and bias. To the extent you can eliminate both and replace them with data, you gain a clear advantage. (michael lewis, moneyball: Local crimes increase after public sporting events. Prediction: i knew you were going to do that: every important thing a person does is valuable to predict: consume, think, work, quit, vote, love, procreate, divorce, mess up, lie, cheat, steal, kill, and die , examples. Prediction effect: mass marketing: 1% overall marketing response rate, aggregate and individual, prediction effect: predicting better than pure guess work, even if not accurately, delivers real value. A little prediction goes a long way: technology that learns from experience (data) to predict the future behavior of individuals in order to drive better decisions, it is different from forecasting, which makes aggregate predictions on a.