What is profit type in SAP BI-RA-PA - SAP Predictive Analytics?

SAP Term: profit type

• Component: BI-RA-PA

• Component Name: SAP Predictive Analytics

• Description: Allows calculation of the profit that may be realized using the model. In general, a benefit is associated with the positive or expected values of the target variable and a cost is associated with the negative or unexpected values.

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• Key Concepts: 
  Profit type is a term used in SAP Predictive Analytics to refer to the type of profit that a company is trying to achieve. It can be either gross profit, operating profit, or net profit. Gross profit is the total revenue minus the cost of goods sold, operating profit is the total revenue minus all operating expenses, and net profit is the total revenue minus all expenses. 
  
  How to use it: 
  In SAP Predictive Analytics, profit type is used to determine the type of analysis that will be performed. For example, if a company wants to analyze its gross profit, then it would select the “Gross Profit” option in SAP Predictive Analytics. This will then allow the company to analyze its gross profit and make decisions based on the results. 
  
  Tips & Tricks: 
  When selecting a profit type in SAP Predictive Analytics, it is important to consider the goals of the company and what type of analysis will be most beneficial. For example, if a company wants to analyze its operating expenses, then it would be best to select the “Operating Profit” option in SAP Predictive Analytics. 
  
  Related Information: 
  SAP Predictive Analytics also allows companies to analyze other types of data such as customer segmentation, sales trends, and customer lifetime value. Additionally, companies can use SAP Predictive Analytics to create predictive models that can help them make better decisions and improve their profitability.