Predictive Analytics

Companies can now base important decisions on real, scientifically valid experiments. In the past, any foray into randomized testing (the random assignment to groups that we mentioned above) meant employing or engaging a PhD in statistics or a “design of experiments” expert.

This kind of statement is becoming more common in the age of Big Data.56 Who needs theory when you have so much information? But this is categorically the wrong attitude to take toward forecasting, especially in a field like economics where the data is so noisy. Statistical inferences are much stronger when backed up by theory or at least some deep

Business AI mines these databases for hidden correlations that often escape the naked eye and human brain. It draws on all the historic decisions and outcomes within an organization and uses labeled data to train an algorithm that can outperform even the most experienced human practitioners. That’s because humans normally make predictions on the ba