Unit 3 Assignment 3

Predictive modelling and forecasting

What is predictive modelling?

Predictive modelling is used to create statistical models of future behaviour. Predictive modelling is a process which is used in predictive analytic. Email filters use predictive modelling to detect spam by looking at certain characteristics of each email to either allow it into your inbox or spam mailbox

What is forecasting?

Forecasting is used in businesses to determine the amount of materials they need to renew stock. The decision on what to stock up on would be determined on the sale numbers of different materials. In other terms of forecasting, forecasting is to make statements about events which have not yet happened. An example of this is something like the weather forecast. The way that this happens is that it the business will take results from the past and present to predict outcomes in the future so that the business is then prepared for the future and are then able to make as much income as possible.