C H A P T E R  10

PowerPivot and Predictive Analytics

The only relevant test of the validity of a hypothesis is comparison of prediction with experience.

—Milton Friedman

Until this point, this book has been concerned with examples using data to look back at what has happened in the past—for example, determining which flights have been delayed in the past, for carriers and airports. Another example of historical reporting and analysis is the decomposition of sales by product and division. Both of these examples rely upon an historical record of activities that have already occurred.

PowerPivot is not limited to creating insight into the past, however. Imagine the level of perceptiveness that would be created by using PowerPivot to utilize the past and create a vision of what could be possible in the future. This sort of predictive analytics, also known as data mining, is no longer a field restricted to doctoral candidates in mathematics and statistics. You can readily create a data mining workstation by combining PowerPivot for Excel with add-in software already available from Microsoft and others.