Decoding the Mysteries of Business Analytics: Top 5 Approaches to Transform Data into Success

Predictive Analytics: Gazing into the Business Crystal Ball

Predictive analytics is another potent weapon in a business analyst's arsenal. It uses historical data to predict future events. Employing machine learning techniques and statistical algorithms, predictive analytics provides a foresight into potential opportunities and risks.

An airline industry can use predictive analytics to determine ticket prices. By adjusting ticket prices based on factors like season, customer demand, and competitive offerings, airlines can maximize their revenues.

Predictive analytics can also help reduce risk. For instance, in the banking sector, it can predict the likelihood of a borrower defaulting on a loan based on historical data, enabling the institution to make informed lending decisions.