What Is Predictive Model Performance Evaluation And Why Is It Important

Predictive models are proving to be quite helpful in predicting the future growth of businesses, as it predicts outcomes using data mining and probability, where each model consists of a number of predictors or variables. A statistical model can, therefore, be created by collecting the data for relevant variables. There are two categories of problems that a predictive model can solve depending on the category of business — classification and regression problems. The classification category describes predicting which category the sample should fall into and the latter describes predicting quantity. These two categories are the initial points of a data science team for choosing the right metrics and then determining a good working model. In this article, we will understand the prediction model and performance evaluation from its core and its importance. Important Applications Of Predictive Modelling In Business True-lift Modeling: This is a predictive modelling technique, also know