Advanced Predictive Analytics Prof Sunil Wattal

Agenda Introductions Intro to Data Analytics Course Logistics Overview of Topics Setting up SAS EM

Data Analytics McKinsey Report ◦shortage of 1.5 million analytics individuals in US

Data Analytics Big Data market size ~ $7billion in 2012 ◦40% growth rate

Big Data What is a quintillion? 90% of world’s data generated in last 2 years

Where does Big Data come from?

Data Analytics Examples Google: Targeted Advertising Bank: Default Prevention Call Centers: Speech recognition Pharma: Salesforce planning Netflix: Recommendations, Planning Content WalMart: Inventory Planning

Examples

Example : Twitter Analytics Examples: Quantitative Insights : Klout

Regression Most common statistical method Impact of one or more variables (independent variable) on some outcome (dependent variable) Applications: promotional response, price elasticity

Logistic Regression Regression analysis with the outcome is a categorical variable Can calculate the odds ratio / probability of an event happening Examples: Likelihood of winning an election, likelihood of winning a game

Web Analytics Is your website working hard enough? What metrics can help you answer that?

Web Analytics Metrics

Neural Networks Neural Networks are analytic techniques modeled after the (hypothesized) processes of learning in the cognitive system and the neurological functions of the brain Advanced data mining tools used where other techniques do not product satisfactory results Example: coors tested the relation between chemical composition of beer and its taste

Visualization How can you represent hundreds of tweets

Dealing with Data Variable selection Model assessment Model scoring

Twitter Analytics Qualitative Analytics – Stream Graphs

Organizational Buy-In Strategic Alignment Technology and Infrastructure Multi-channel analytics

When Walmart can use weather predictions to send supplies, why not FEMA?

Concerns about Big Data Widespread tracking Privacy False positives ‘Bad’ customners

Questions