Limitations of Predictive Analytics

 Limitations of Predictive Analysis

 

Predictive analysis is the use of data, algorithms and machine learning techniques to predict future outcomes from data. The largest inaccuracy of Big Data is the application of large data sets on individuals.

The reason predictive analysis is flawed is that its not a guaranteed outcome. Despite each prediction being more accurate, the larger the data set is, it is still not the certain outcome.

For example, predictive analytics for 2020 would have likely been inaccurate as COVID-19 would have changed the outcomes for supply chains, prices, global health, economies, and public opinion.

I found a website that offered a comparison between the predictions and reality. it said that in 2020, global GDP was forecast to have 2.9% growth, however, it actually decreased by 3.4%. This shows that no matter how much data you have, you can never be completely sure of future outcomes.

https://www.statista.com/statistics/1102889/covid-19-forecasted-global-real-gdp-growth


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