Overview(Cont.) Predictive models are widely used today E.g.,use customer profile features (e.g.income,age,gender, education,employment)and past history of a customer to predict likelihood of default on loan and use prediction to make loan decision E.g.,use past history of sales(by season)to predict future sales And use it to decide what/how much to produce/stock And to target customers Other examples of business decisions: ·Vhat items to stock? What insurance premium to change? To whom to send advertisements? Database System Concepts-7th Edition 11.5 ©Silberscha乜，Korth and SudarshanDatabase System Concepts - 7 11.5 ©Silberschatz, Korth and Sudarshan th Edition Overview (Cont.) ▪ Predictive models are widely used today • E.g., use customer profile features (e.g. income, age, gender, education, employment) and past history of a customer to predict likelihood of default on loan ▪ and use prediction to make loan decision • E.g., use past history of sales (by season) to predict future sales ▪ And use it to decide what/how much to produce/stock ▪ And to target customers ▪ Other examples of business decisions: • What items to stock? • What insurance premium to change? • To whom to send advertisements?