/* ---- Google Analytics Code Below */

Saturday, June 22, 2013

Avoiding Pitfalls in Predictive Analytics

Venkat Viswanathan  makes some useful comments.  Some of them relate to my favorite suggestion: Simplify.

" Predictive analytics will almost always enable better business decisions. While customer behavior may have changed due to the current economic climate, the value provided by a predictive model will always be better than that driven by instinct or gut-feelings.

But there are also many pitfalls associated with predictive analytical modeling that can seriously and wrongfully skew the results. For example, wrong or out-of-date data going in can result in an incorrect prediction coming out. So can using irrelevant data points or giving them too much weight in the overall consideration. Mistaking correlation for causation is yet another common pitfall. A related misjudgement is investing too heavily in analytic tools. Companies often buy expensive and complex software that is just too sophisticated for their needs.... " 

No comments: