16.3 Predictive Modeling
After understanding our data through EDA and visualization, the next sensible step is to make some predictions based on this understanding. Predictive modeling enables us to anticipate future trends and outcomes by using algorithms and statistical models. This is a crucial step in the data analysis process, as it allows us to make informed decisions and plan for the future.
By building a predictive model, we can gain insights into potential future sales trends and patterns. This can help us to identify areas for improvement, optimize our resources, and make informed business decisions. Predictive modeling is like a magic wand, but backed by data, and can provide us with valuable insights that we might not otherwise have access to.
In this section of our Sales Data Analysis case study, we'll delve deeper into the process of building a predictive model. We'll explore the different types of models that we can use, and the different algorithms and statistical...