In our last video, I had introduced you all to the topic that is business analytics. We are covered the following topics that is what is business analytics, the data for business analytics, the comparative study between business intelligence and business analytics, the different business and analytics applications, the importance of business analytics, the different properties of measurement that is the identity property of measurement, magnitude, equal intervals at absolute zero and the four scales of measurement that is nominal scale, ordinal scale, interval scale and ratio scale. In this video, we will be doing the main categories of analytics that is first is the descriptive analytics. Next, predictive analytics and Next is the prescriptive analytics. Now, what is descriptive analytics? descriptive analytics is the use of data Find out what happened in the past and what is happening now.

It is a preliminary stage of data processing that creates a summary of historical data to yield useful information and possibly prepare the data for further analysis. Descriptive analytics uses data aggregation and data mining to provide insight into the past and answer what has happened. Descriptive analysis or statistics does exactly what the name implies. They describe or summarize raw data and make it something that is interpretable by humans, descriptive analytics and analytics that describes the past. The past refers to any point of time that an event has occurred, whether it is one minute ago, or one year ago. Descriptive analytics are useful because they allow us to learn from past behaviors and understand how they might influence future outcomes.

Descriptive analytics includes vast majority of the statistical measures like some averages, percentage changes. etc prescriptive analytics are useful to show things like total stocking inventory average dollar spent per customer and year over year changing sales. Common examples in descriptive analytics are reports that provide historical insights regarding the company's production, financials, operations, sales, finance, inventory and customers. Now, what is predictive analytics? predictive analytics is the use of data to find out what could happen in the future. So it is a branch of the advanced analytics, which is used to make predictions about unknown future events.

Predictive analysis uses many statistical analysis techniques and analytical queries through data sets to create predictive models that place a numerical value or score on the likelihood of a particular event happening. So in predictive analytics, or we also call it as predictive modeling, we are predicting the value of our outcome variable or independent variable using various predictor variables that outcome variable can be a continuous Variable also and we can also calculate the probability of that particular outcome variable also. So basically we're calculating the value of the outcome variable based on number of independent variables or character variables. We can also call the independent variables as various predictors predictive analytics Office applications uses variables that can be measured and analyzed to predict the likely behavior of individuals machinery or other entities. multiple variables are combined into a predictive model, capable of assessing future probabilities with an acceptable level of reliability.

Predictive Analytics has grown in prominence. Alongside the emergence of big data systems. Predictive Analytics or modeling is a process that uses data mining and probability to forecast outcomes. Each model is made up of a number of predictors, which are variables that are likely to influence future results once data has been collected for relevant predictors. artistical model is formulated and this model we call as predictive model. In our program which is aspect is modeling program, we will be learning three techniques that is linear regression, logistic regression and time series forecasting.

Now let's move to the next category of analytics that is prescriptive analytics. Now what is prescriptive analytics prescriptive analytics is the use of data to prescribe the best course of action for the future. It is the area of business analytics dedicated to find the best course of action for a given situation prescriptive analytics is related to both descriptive and predictive analytics prescriptive analytics seeks to determine the best solution or outcome among various choices given the known parameters. prescriptive analytics can also suggest decision options for how to take advantage of a future opportunity or Michigan a future risk and illustrate the implications of each decision options in practice prescriptive in our This can continually and automatically process new data to improve the accuracy of predictions and provide better decision options. prescriptive analytics are used by larger companies to optim prescriptive analytics are used by larger companies and it is used to optimize production should you win an inventory in the supply chain to make sure that are delivering the right products at the right time and optimizing the customer experience.

So prescriptive analytics, which are used by large companies are analytics to optimize production should you leave an inventory in the supply chain to make sure that they are delivering the right products at the right time and optimizing the customer's experience? Now this is a comparative study between descriptive predictive and prescriptive analytics. Descriptive analytics helps you understand how things are going predictive analytics that helps you forecast future Performance and Results and prescriptive analytics, that it's suddenly substract next step or action so we will be doing this much in this video. So let me recap the portions that we have covered in this video we have covered the main categories of analytics that is what are the three main categories of analytics one is descriptive analytics, which is the use of data to find out what happened in the past and what is happening now. Next is predictive analytics.

That is the use of data to find out what could happen in the future. And next is prescriptive analytics. That is the use of data to prescribe the best course of action for the future. In our next video, we will be starting the concept of linear regression, we'll be doing the concept of linear regression the line of best fit the features of a line the different assumptions of linear regression. So in our next video, we will be starting with the concept of linear regression and all the different concepts that comes under the topic linear regression For now, let's end this video. Goodbye.

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