What is predictive analytics?

Predictive analytics refers specifically to the use of historical data to forecast future outcomes. This involves employing statistical techniques and mathematical algorithms to analyze patterns and trends in data from the past, which can then be applied to predict what is likely to happen in the future.

This process typically involves various techniques such as regression analysis, machine learning, and data mining. By understanding the correlations and influences present in the historical data, organizations can make informed predictions, helping them to strategize and allocate resources more effectively.

The other options do not accurately capture the essence of predictive analytics. Real-time data analysis pertains more to operational analytics, financial reports are primarily focused on financial performance without the forecasting aspect, and data visualization is concerned with representing data visually rather than predicting future trends. Thus, using historical data to forecast is the core principle of predictive analytics, making it the correct choice.