Business Analytics Predictive Modeling Example

Suppose an e-commerce company wants to predict monthly product sales based on monthly website visits.

Sample Data

Month	Website Visits	Product Sales (Units)
Aug	100	15
Sep	150	25
Oct	200	34
Nov	250	40
Dec	300	50

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Linear Regression Model

Sales = Intercept + (Slope × Website Visits)

Assume the model calculates:

• Intercept: 2
• Slope: 0.16

[model identifies relationship between variables (site visits & sales): variance and correlation]

So, the prediction formula (model) built is:

Sales = 2 + (0.16 × Website Visits)

Last February, there were 85 website visits to our online store. We expect an 8% increase this year in Feb.

This Feb website visits = 91.8

Feb Sales This Year = 2 + (.16 x 91.8)

Company prediction for Feb Sales This Year = 16.688 products

Click here to see Python Code

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