Inference

Inference in business intelligence and data analytics is the process of drawing conclusions from data that you’ve collected. Think of it like being a detective: after looking at all the clues (the data), you make your best guess (inference) about what’s happening or what could happen in the future. It’s not just a wild guess, though; it’s based on patterns, trends, and statistical methods that give you a hint about the answer.

For instance, if an online clothing store notices that every time they post a coupon on social media, their sales spike, they can infer that their customers love deals and are likely to buy more when there’s a promotion. Inferences help businesses decide where to focus their efforts, like perhaps running more promotions to boost sales.

In the world of data, inference is a way to make informed predictions or decisions without having all possible information. While you can’t be 100% certain, you can be pretty confident you’re making a smart move. It’s all about using data you have to make the best possible guesses about the data you don’t have, helping steer the company in the right direction.