Prescriptive analytics is considered to be a step further ah

Prescriptive analytics is considered to be a step further ahead of predictive analysis and substantially different from it. Provide an example of each and outline their differences.

Solution

The differences between Prescriptive analytics and Predictive analysis:

Prescriptive analytics

Predictive analytics

It provides major impact on business growth. It uses a techniques and tools for the development.

It provides the recommendations for the development of the business.

This is sophisticated version of the predictive analysis. It describes what should a business do.

It accurately predicts what can happen in the further process of the business development.

It generates a map between the set of the data against the possible outcome depending of the data patterns generated from the historical data.

It performs analysis on the huge historical data set and predicts what happen in the future depending on the parameters.

It allows scenario analysis, simulates the future using various assumption sets.

The contextual data is collected and related with datasets of the users.

It optimizes the productions of the business and schedules inventory in a chain supply.

Using the statistical algorithms of the machine learning it predicates the future conditions.

Examples:

The companies which works on motors and engines like pipeline company, utility companies, and gas producer’s companies use prescriptive analysis to find the factors affecting the components of the company.

Examples:

Predicating credit score.

Predication like what product sales will be more and which are the potential customers for giving loan based on their credit performance over the years?