This textbook presents a practical approach to predictive analytics for classroom learning. It focuses on using analytics to solve business problems and compares several different modeling techniques, all explained from examples using the SAS Enterprise Miner software. The authors demystify complex algorithms to show how they can be utilized and explained within the context of enhancing business opportunities. Each chapter includes an opening vignette that provides real-life example of how business analytics have been used in various aspects of organizations to solve issue or improve their results. A running case provides an example of a how to build and analyze a complex analytics model and utilize it to predict future outcomes.
Table of Contents
Introduction to Predictive Analytics.- Know Your Data – Data Preparation.- What do Descriptive Statistics Tell Us.- The First of the Big Three – Regression.- The Second of the Big Three – Decision Trees.- The Third of the Big Three - Neural Networks.- Model Comparisons and Scoring.- Appendix A.- Data Dictionary for the Automobile Insurance Claim Fraud Data Example.- Conclusion.