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Machine learning
Machine learning is a form of artificial intelligence intended to give computer systems the ability to learn
by making improvements through experience without being directly programmed to do so. It started with
ideas about pattern recognition and now focuses primarily on developing computer programs that can
access data and use it to learn for themselves. Beginning with sample data based on examples or direct
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experience, the programs look for patterns in data to better perform specific tasks or make decisions.
Machine learning is an iterative process, with programs constantly adapting as they are exposed to new
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data. The section on artificial intelligence later in this chapter provides more information on machine
learning.

Applications of predictive analytics
Common applications for predictive analysis include the following:

 Improving operations
 Optimizing marketing campaigns
 Fraud detection
 Risk mitigation

There are too many specific examples of predictive analysis in practical use to cite, but here are a few:

 Credit scoring throughout financial services
 Health tracking to predict flu activity by geography
 Sports outcomes leveraging social media sentiments
 Weather predictions based upon historical patterns
 Insurance fraud based upon high-risk factors
 Energy utilization and outages
 Retail customer satisfaction as a predictor of sales and market share

Deployment
Today, many software vendors offer predictive analytic applications by way of BI platforms and machine
learning platforms. Most of these solutions are deployed using the R common programming language.
R is a programming language and free software environment for statistical computing and graphics.
Statisticians and data miners use it for developing statistical software and data analysis. Currently,
predictive analysis occurs in a non-technical, web-based interface. It is no longer dependent on technical
skills, but rather business expertise. This brings predictive analysis closer to the business experts.

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See https://www.expertsystem.com/machine-learning-definition/. Last accessed September 10, 2019.
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See https://www.sas.com/en_us/insights/analytics/machine-learning.html. Last accessed September 10, 2019.

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