What are predictive analytics?

Predictive analytics involves the use of historical data combined with statistical algorithms and machine learning techniques to identify patterns and predict future outcomes. By analyzing trends and behaviors from past data, organizations can forecast what is likely to happen in the future, which can significantly enhance decision-making processes. For example, businesses might use predictive analytics to anticipate customer behavior, optimize marketing strategies, or manage risk.

The other choices focus on different aspects of data management and analysis but do not accurately define predictive analytics. Enhancing data quality pertains to ensuring the accuracy and reliability of data, graphic representations of data relate to visualization techniques, and data entry software refers to tools used for inputting data into systems—all of which are distinct from the concept of predicting future events based on historical data insights.