Descriptive Analytics in Business Intelligence
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Questions and Answers

What is the primary purpose of descriptive analytics?

  • To identify the underlying reasons for trends
  • To recommend the next course of action
  • To summarize raw data and reveal trends (correct)
  • To forecast future trends
  • Which type of analytics correlates data to uncover underlying reasons for trends?

  • Predictive analytics
  • Diagnostic analytics (correct)
  • Prescriptive analytics
  • Descriptive analytics
  • What technique is used in predictive analytics to forecast future trends?

  • Regression analysis
  • Frequency analysis
  • Statistical modeling and machine learning (correct)
  • Time-series analysis
  • What is the ultimate goal of prescriptive analytics?

    <p>To recommend the next course of action</p> Signup and view all the answers

    Which type of analytics is used to identify the customer segment responsible for generating the highest revenue?

    <p>Descriptive analytics</p> Signup and view all the answers

    What is used in diagnostic analytics to identify the underlying reasons for trends?

    <p>Probability theory and time-series analysis</p> Signup and view all the answers

    What is the primary objective of prescriptive analytics?

    <p>To recommend the next course of action</p> Signup and view all the answers

    Which type of analytics is used to identify the highest revenue-generating customer segment?

    <p>Descriptive analytics</p> Signup and view all the answers

    What technique is commonly used in predictive analytics?

    <p>Statistical modeling</p> Signup and view all the answers

    What is the primary difference between diagnostic analytics and prescriptive analytics?

    <p>The objective of the analysis</p> Signup and view all the answers

    Which type of analytics helps a food processing company find the reason for the spike in sales of protein beverages?

    <p>Diagnostic analytics</p> Signup and view all the answers

    What is an example of an application of prescriptive analytics?

    <p>Recommending the optimal price and marketing strategies</p> Signup and view all the answers

    Study Notes

    Descriptive Analytics

    • Summarizes raw data using data mining and aggregation techniques to reveal trends
    • Involves measures of distribution (frequency or count), measures of central tendency (mean, median, mode), and measures of variability (variance and standard deviation)
    • Helps identify the customer segment responsible for generating the highest revenue for a product

    Diagnostic Analytics

    • Analyzes data and correlates it with other data sets to uncover the underlying reasons for trends
    • Techniques include probability theory, time-series analysis, filtering, and regression analysis
    • Identifies specific features of the customer segment that contribute to their product purchases

    Predictive Analytics

    • Uses statistical modeling, data mining, and machine learning to forecast what will happen in the future
    • Analyzes large volumes of data to calculate upcoming trends
    • Can project the expected demand each customer segment will generate in the upcoming quarter

    Prescriptive Analytics

    • Recommends the next course of action based on predictions
    • Harnesses data optimization, simulation, and decision analysis methods using artificial intelligence or machine learning techniques
    • Recommends the optimal price and marketing strategies based on the forecasted demand and other contributing factors
    • Helps identify the most profitable products and services to offer

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    Description

    Learn about descriptive analytics, a fundamental step in business intelligence, which involves summarizing raw data to reveal trends and identify customer segments.

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