Predictive Modeling is a mathematical approach to build models based on the existing data, which helps in finding the future value or trend of a variable. It involves very heavy mathematical and statistical analysis to create such models.
Following are some examples, where predictive modeling is used.
A university tries to predicts whether a student will choose to enroll by applying predictive models to applicant data and admissions history.
In a retail shop to find out which two items are most likely to sell well together.
In airline industry to estimate the number of passengers who won’t show up for a flight.
MicroStrategy can help in carrying out predictive modeling as its data mining services is fully integrated to its BI platform.
MicroStrategy has data mining services, which allows the users to import PMML (Predictive Model Markup Language) from third party data mining tools, which can then be used to create predictive reports.
PMML is an XML standard that represents data mining models developed and trained by data mining tool. PMML supports a number of different data mining algorithms, including Regression, Neural Networks, Clustering, Decision Trees and Association. It incorporates data transformation and descriptive statistics.
The following diagram describes the process of creating predictive data model reports in MicroStrategy.
Once imported into MicroStrategy, we can enhance the model by using the following features.
Following are the list of features which highlight the strength of MicroStrategy to be used as a predictive modeling tool.
Built-in Data Mining Functions − There are 250 basic, OLAP, mathematical, financial, and statistical functions that can be used to create key performance indicators.
Data Mining Integration Using PMML − It allows the users to import PMML from third party data mining tools, which can then be used to create predictive reports.
User Scalability − Hundreds of thousands of users, internal and external to the enterprise, can access this feature.
Data Scalability − MicroStrategy’s relational OLAP (ROLAP) architecture combined with its Intelligent Cube technology can handle any size of database while delivering high performance.