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0:00
Hello. My name is Barry Keating,
and I'm on the faculty of
the College of business at
the University of Norre
Dame where I've taught
forecasting and analytics
courses for over 30 years.
This talk is about the
latest developments in
prediction called
predictive analytics.
Universities are creating
analytics departments.
Businesses are
using big data and
even your automobile uses
artificial intelligence.
Each of these situations is
an instance of analytics
making predictions.
0:36
Cheap changes everything.
In an earlier talk,
we discussed how when the
price of something falls,
we use more of it.
It's happening right now in
a big way with
predictive analytics.
If economists are
good at one thing,
it's cutting through the hype.
Remember that we found that
technological
change makes things
cheap that were once expensive.
Computers do arithmetic
and nothing more.
But in the process the cost
of calculation has
dropped dramatically.
Along with the steep
drop in the price of
calculation has come another
steep drop in price.
The drop in the
price of collecting,
storing and accessing data.
Remember that data is
the raw material data scientists
use to create information.
1:24
In these talks, we've outlined
the chronology of how
the science of
prediction has evolved.
That evolution was
not a revolution
but rather a slow shift
over time in the way we
created predictions driven
by changing costs of making
the predictions
and the usefulness
of the predictions themselves.
Just like the evolution
of light bulbs from
