From the course: SQL for Finance Professionals
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What is predictive modeling? - SQL Tutorial
From the course: SQL for Finance Professionals
What is predictive modeling?
- [Instructor] Predictive modeling is the process of taking past data to develop, train, and validate a model to predict future events, behaviors, and risks. Due to the rapid migration to and adoption of digital tools in the finance industry, vast amounts of real time data are produced that need predictive modeling tools and techniques to make sense of it all, specifically, by processing a large amount of historical data, analyzing it, and identifying trends and patterns, then providing users with the ability to not only query the historical data, but also assess the probability of future events and behaviors occurring. There are three specific predictive model types that are the most widely used in the field: classification, outlier, and time series models. Classification models learn from historical data to be able to bucket future data into categories: most often, just two categories. Some of the kinds of questions this…
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