Amazon Machine Learning works by supervised training. You must provide it with historical data (as much as possible) and a result. It can then predict the result when given a set of inputs.
For example, if you were predicting sales for Ice Cream, you might provide input data such as:
- Month
- Day of Week (Mon-Sun)
- Weather (Sunny, Windy, Hot, Cold)
- Is it a public holiday?
- Is it a school holiday?
- Temperature
You would also provide a result, such as the number of ice creams sold.
You take as much of the above data as possible and upload it to Amazon Machine Learning, which then generates a model that best fits your data. Internally, it will use linear regression but it will automatically choose the model using many different predictive algorithms.
Then, you can ask it to predict values for a given set of inputs, such as:
- July
- Wednesday
- Windy day
- Not public holiday
- School holiday
- 50 F temperature
It will then generate a predicted level of Ice Cream sales.
Machine Learning works best if you can provide it with many examples so that it can better build the predictive algorithm. You should also provide many different variables. For example, don't just give it a date, because the date is different every day. Instead, break it down into Day of Week, Month, Quarter, Public Holiday -- so that it can find deeper meaning in the day itself rather than just being the 128th day of the year.
For further details, see: Amazon Machine Learning Key Concepts