Posted: September 13th, 2017

Predictive Modeling

Predictive analytics involves using information from historical data to identify patterns in order to determine possibilities for the future. Regression and trend analyses are both examples of predictive analytics.

Assume that for a given company, Net Profit will increase when Sales increase. In this scenario the linear relationship exists between Sales (the independent variable) and Net Profit (the dependent variable).

Develop a trend and linear regression analysis for a public company of your choice. Map the past 10 years of Sales and Net Profit data. Predict future values for the next two years for the dependent variable (Net Profit).
The website Introducing Predictive Marketing: The Next Stage of Business Optimization at http://www.seotakeaways.com/introducing-predictive-marketing-stage-business-optimization/ provides information on the calculations

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