What do predictive analytics do?

Predictive analytics is focused on forecasting potential future outcomes by utilizing historical data and statistical algorithms. It analyzes patterns and trends from past data to predict what is likely to happen in the future. This process involves various techniques, including machine learning and data mining, which help to identify correlations and build predictive models. By leveraging such models, organizations can make informed decisions and anticipate possible scenarios, thus allowing for better strategic planning and risk management.

The other options do not align with the primary functionality of predictive analytics. For instance, analyzing data without considering past events would not provide an effective basis for making predictions. Explaining why certain events occurred pertains more to descriptive analytics, which seeks to understand historical data rather than forecast future trends. Providing recommendations for business actions typically falls within the realm of prescriptive analytics, which goes a step further by suggesting specific strategies based on predictive insights.