What is precision in SAP BI-RA-PA - SAP Predictive Analytics?

SAP Term: precision

• Component: BI-RA-PA

• Component Name: SAP Predictive Analytics

• Description: A metric of the error matrix also called confustion matrix. It is the proportion of predictive positive targets that are actually positive targets. Calculation formula is: True Positive/True Positive + False Positive

Smart SAP Assistant

• Key Concepts: 
  Precision is a measure of how accurately a model can predict the outcome of a given data set. It is calculated by dividing the number of correct predictions by the total number of predictions made. In SAP Predictive Analytics, precision is used to evaluate the accuracy of predictive models.
  
  How to use it: 
  Precision can be used to compare different predictive models and determine which one is most accurate. To calculate precision, divide the number of correct predictions by the total number of predictions made. The higher the precision, the more accurate the model is.
  
  Tips & Tricks: 
  When evaluating predictive models, it is important to consider both precision and recall. Precision measures how accurately a model can predict the outcome of a given data set, while recall measures how many of the actual outcomes were correctly predicted. Both metrics should be taken into account when evaluating a model’s performance.
  
  Related Information: 
  Precision is closely related to other metrics such as accuracy, recall, and F1 score. Accuracy measures how often a model makes correct predictions, while recall measures how many of the actual outcomes were correctly predicted. F1 score combines precision and recall into one metric that can be used to evaluate a model’s performance.