What We Do

Methodology

Our methodology for building predictive analytics solutions is based on an iterative 4-step process.

Objectives

First, we conduct short interviews with clients to determine the objective of their analysis. Examples of objectives include:

  • Generating product recommendations for a website based on a customer’s purchasing history
  • Estimate the future return of an equity based on publicly available insider transaction data
  • Build exploratory visualizations to determine if sports team synchrony influences performance
Data

The next step is examining your data.  We work with data in any form: text files, Excel worksheets, or SQL databases are not a problem. For a one-time analysis we will usually take the data in whatever form you have available. If the analysis is going to be recurring, we will help you design a process for extracting the data from the source system, checking the data for errors, and transforming the data for use with our analytical tools.

Preparing the data for analysis can be a large part of the project. Factors that influence the amount of data preparation work include the quantity of missing values and the degree to which the data has already been normalized or coded. As an example, consider an analysis involving age. If some of the ages are recorded as intervals like 30 – 39 and others are recorded as whole numbers like 54 then we will have to recode this field in a consistent manner.

Methods

The third step in our process is determining the appropriate methods to solve your problem. We use traditional statistical techniques such as least-squares regression, more modern approaches such as multilevel/heirarchical models, and statistical learning approaches such as decision trees or support vector machines. Some of the factors that guide this decision include:

  • Number of records and predictors in dataset
  • Need for transparency in understanding model outputs
  • Availability of computing resources to update the model
Results

We provide you with the results of the analysis in a written report using appropriate tables and visualizations. We determine to what degree the results are statistically and economically significant and make recommendations for future work.

Enplus Advisors 4-step Method

Services