Book Image

The Art of Data-Driven Business

By : Alan Bernardo Palacio
Book Image

The Art of Data-Driven Business

By: Alan Bernardo Palacio

Overview of this book

One of the most valuable contributions of data science is toward helping businesses make the right decisions. Understanding this complicated confluence of two disparate worlds, as well as a fiercely competitive market, calls for all the guidance you can get. The Art of Data-Driven Business is your invaluable guide to gaining a business-driven perspective, as well as leveraging the power of machine learning (ML) to guide decision-making in your business. This book provides a common ground of discussion for several profiles within a company. You’ll begin by looking at how to use Python and its many libraries for machine learning. Experienced data scientists may want to skip this short introduction, but you’ll soon get to the meat of the book and explore the many and varied ways ML with Python can be applied to the domain of business decisions through real-world business problems that you can tackle by yourself. As you advance, you’ll gain practical insights into the value that ML can provide to your business, as well as the technical ability to apply a wide variety of tried-and-tested ML methods. By the end of this Python book, you’ll have learned the value of basing your business decisions on data-driven methodologies and have developed the Python skills needed to apply what you’ve learned in the real world.
Table of Contents (17 chapters)
Part 1: Data Analytics and Forecasting with Python
Part 2: Market and Customer Insights
Part 3: Operation and Pricing Optimization

Finding the demand curve

A demand curve in economics is a graph that depicts the relationship between the price of a specific good and the amount of that good needed at that price. Individual demand curves are used for price-volume interactions between individual consumers, while market-wide demand curves are utilized for all consumers (a market demand curve).

It is generally accepted that the demand curve declines because of the law of demand. For the majority of things, demand declines as price rises. This law does not apply in several peculiar circumstances. These include speculative bubbles, Veblen goods, and Giffen goods, and when prices rise, purchasers are drawn to the products.

Demand curves are used in combination with supply curves to establish an equilibrium price. At this ideal point, both sellers and buyers have achieved a mutual understanding of how valuable a good or service really is, which allows us to produce just enough to satisfy the demand without shortages...