12 Questions
What is the primary purpose of descriptive analytics?
To summarize raw data and reveal trends
Which type of analytics correlates data to uncover underlying reasons for trends?
Diagnostic analytics
What technique is used in predictive analytics to forecast future trends?
Statistical modeling and machine learning
What is the ultimate goal of prescriptive analytics?
To recommend the next course of action
Which type of analytics is used to identify the customer segment responsible for generating the highest revenue?
Descriptive analytics
What is used in diagnostic analytics to identify the underlying reasons for trends?
Probability theory and time-series analysis
What is the primary objective of prescriptive analytics?
To recommend the next course of action
Which type of analytics is used to identify the highest revenue-generating customer segment?
Descriptive analytics
What technique is commonly used in predictive analytics?
Statistical modeling
What is the primary difference between diagnostic analytics and prescriptive analytics?
The objective of the analysis
Which type of analytics helps a food processing company find the reason for the spike in sales of protein beverages?
Diagnostic analytics
What is an example of an application of prescriptive analytics?
Recommending the optimal price and marketing strategies
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
Learn about descriptive analytics, a fundamental step in business intelligence, which involves summarizing raw data to reveal trends and identify customer segments.
Make Your Own Quizzes and Flashcards
Convert your notes into interactive study material.
Get started for free
