The use of predictive analytics in finance
Review of predictive analytics in finance, covering statistical and computational methods for decision support systems.
What it examines
This paper reviews predictive analytic methods in finance, focusing on classification, regression, clustering, association, and time series models. It aims to provide a comprehensive overview of these methods and their applications in financial decision support systems (DSS).
What it concludes
The study concludes that integrating predictive analytics into DSS can significantly improve financial decision-making. Potential applications include stock price prediction, credit scoring, and fraud detection. Future research should focus on handling unstructured data and developing prescriptive analytics.
Evidence objects
The study concludes that integrating predictive analytics into DSS can significantly improve financial decision-making. Potential applications include stock price prediction, credit scoring, and fraud detection. Future research should focus on handling unstructured data and developing prescriptive analytics.
key_findings bullet 1 · key_findings · validation V0
Raw abstract and provenance
Statistical and computational methods are being increasingly integrated into Decision Support Systems to aid management and help with strategic decisions. Researchers need to fully understand the use of such techniques in order to make predictions when using financial data. This paper therefore presents a method based literature review focused on the predictive analytics domain. The study comprehensively covers classification, regression, clustering, association and time series models. It expands existing explanatory statistical modelling into the realm of computational modelling. The methods explored enable the prediction of the future through the analysis of financial time series and cross-sectional data that is collected, stored and processed in Information Systems. The output of such models allow financial managers and risk oversight professionals to achieve better outcomes. This review brings the various predictive analytic methods in finance together under one domain.
Source row: 2023 · abstract type: unknown