Predictive analytics uses statistical techniques to analyze current and historical facts to make predictions about future events. In business, analytics use patterns found in data to identify risks and opportunities and the results are then used to help businesses make informed and beneficial decisions. Predictive analytics is used in a variety of business fields, including, finance, insurance, telecommunications, retail, and healthcare. The Prediction Effect is a functional, practical book that helps readers gain maximal value from predictive analytics as well as learn what is fascinating about the core technology and how it works. The book will deliver a palatable serving of substance regarding the core technology to give executives and managers a concrete sense of how predictive analytics functions. The book will demonstrate how to use predictive analytics to assess a borrower's potential and ability to pay before granting a loan predict how expensive an insurance enrollee is likely to be by predicting the chances of illness, default, and bankruptcy predict store level demand for inventory management purposes reduce a business's exposure to fraud identify the most effective combination of products and marketing material that should be used to target consumers determine the likelihood of a customer wanting to terminate service analyze customers' spending and usage to help sell the right product at the right time determine which patients are at risk of developing certain conditions, like diabetes, asthma, and heart disease predict customers' buying habits in order to promote relevant products