Numeric prediction, also known as Regression, predicts a numeric output value using training data. It is effectively used to predict a continuous numeric value, like price or cost. In general, regression tasks are used to get information about certain aspects of a decision that will then inform a choice of action. An example of this is predicting the cost of a house, to then decide if it is worth buying. Examples: Regression is used in the creation of trend lines, which uses past data to predict future performance or “trends.” Assessing the risk associated with investment vehicles. (predict costs of actions) … Continue reading Numeric Prediction (Regression)

Forecasting is the process of using historical data to predict the future. It is commonly used to predict future sales or demand so that business can plan ahead of future events. Forecasting works by predicting numerical quantities for the future using observations from the past, and therefore does not require any knowledge about the future. The immediate applications of forecasting include Sales Forecasting, Manufacturing Forecasting, and Customer Retention, to name a few. While forecasting primarily uses historical data to make predictions, that same technology is also used in our other tasks. If you happen to have prior knowledge about future transactions, … Continue reading Forecasting