From the NAA Industry Insider:
After losing several of his best players, Oakland A’s general manager Billy Beane in 2002 took a gamble when he enlisted replacements that were relatively unknown but statistically had a strong chance of hitting it out of the ballpark, so to speak. Beane’s hunch about his new players proved true when the A’s managed to stay competitive and financially healthy with this new lineup.
Predictive analysis works in a similar fashion. It analyzes trends and data related to the behavior of apartment shoppers to recommend pricing on apartment properties. A number of factors such as rent and occupancy rates go into this formula. “It’s probably the frontier for revenue management going forward,” according to Rich Hughes, head of data science with RealPage Inc., which conducts this type of analysis.
This method of analyzing tenant behavior to determine pricing may be especially useful in assessing certain risks associated with short-term leases.