Chapter 4 Closing Case: Crystal Ball, Clairvoyant, Fortune Telling Can Predictive Analytics Deliver the Future

1. Presented by: Shannon Thomas Ted Doty Christian Johnson Chapter 4 Closing Case:Crystal Ball, Clairvoyant, Fortune Telling�Can Predictive Analytics Deliver the Future?

2. Predictive Analytics: Use variety of decision tools and techniques � such as neural networks, data mining, decision trees � to analyze current/historical data Neural Networks: An artificial intelligence system capable of finding and differentiating patterns Artificial Intelligence: The science of making machines imitate human thinking and behavior Chapter Concepts and Terms

3. Expert System: Artificial Intelligence system that applies reasoning capabilities to reach a conclusion Information Agents: An intelligence agent that searches for information of some kind and brings it back Genetic Algorithm: Artificial Intelligence system that mimics the evolutionary, survival of the fittest process to generate increasingly better solutions to a problem Chapter Concepts and Terms

4. Monitoring-and-surveillance agents: Intelligence agents that constantly observe and report on some entity of interest, a network, or manufacturing equipment Data Mining Agent � Operates in a data warehouse and brings together information from different sources Geographic Information Systems (GIS): Decision support system designed specifically to analyze spatial information Chapter Concepts and Terms

5. Here are some examples of entities that use predictive analytics Richmond Police Department FedEx University of Utah Blue Cross Blue Shield of Tennessee Background Information Richmond police- track the areas of the cities and the times that crimes are committed. FedX-uses a system that delivers results 65 to 90 percent of the time predicts if customers will continue to use the products with a price increase and how much revenue would be gained from proposed drop box locations. University of Utah-to see which alumni will responsed to an annual donation appeal in order to generate more funds Blue Cross-predict which health care resourses will be needed for post operative patients in the future. Richmond police- track the areas of the cities and the times that crimes are committed. FedX-uses a system that delivers results 65 to 90 percent of the time predicts if customers will continue to use the products with a price increase and how much revenue would be gained from proposed drop box locations. University of Utah-to see which alumni will responsed to an annual donation appeal in order to generate more funds Blue Cross-predict which health care resourses will be needed for post operative patients in the future.

6. What is the role of neural networks in predictive analytic networks and how it is used? Good for finding commonalities in situations that have many variables Question #1

7. What if the Richmond police began to add demographic data to its predictive analytics system to further attempt to determine the type of person (by demographic) who in all likelihood commit a crime. Is predicting the type of person who would commit a crime by this type of data good or bad? BAD!!! Question #2

8. Group Activity

9. Should we use predictive analytics to determine the future of humans based on things such as DNA information? Is this a bad use of technology? Is this any different than the personal aptitude tests that we take today? No Bad Similar Question #3

10. What role can Geographic Information Systems (GIS) play in the use of predictive analytics? Population Relation to Stores Affluence of community Question #4

11. How can predictive analytics be used in a airport in order to prevent terrorist activities? What other buildings can this technology be used? Security cameras in high traffic areas Watch patterns Government Buildings, Tourist attractions, High traffic areas Question #5

12. Haag, Stephan (2008). Management Information Systems. Boston, MA: McGraw-Hill Irwin. Reference Page