What is predictive analytics and Its Importance?

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What is Predictive Analytics?
Predictive analytics is the discipline of utilizing data to forecast future events or trends. It constitutes a form of data analysis that revolves around statistical modelling and machine learning algorithms, aiming to uncover patterns and trends. These models are harnessed to make projections about what might unfold in the future.

It is important to differentiate between predictive analytics and prescriptive analytics. While predictive analytics focuses on forecasting, prescriptive analytics goes a step further by providing recommendations based on data. Predictive analytics serves as a foundational stage that precedes the more advanced prescriptive analytics. A detailed comparison between predictive and prescriptive analytics can offer deeper insights into their distinctions.

With a clearer grasp of predictive analytics, let's explore its various types.

Types of Predictive Analytics
Predictive analytics can be broadly categorized into three main types:

1. Clustering: Clustering involves segmenting data into distinct clusters based on shared characteristics. This aids in further analysis and facilitates the identification of inherent data groupings. Clustering enables the discovery of similarities that might have otherwise gone unnoticed, as data points that are closely related are highlighted.

2. Time Series: Time series predictive analytics revolves around analyzing data trends over specific timeframes. This