Descriptive Analytics in Business Intelligence

What is the primary purpose of descriptive analytics?

Which type of analytics correlates data to uncover underlying reasons for trends?

What technique is used in predictive analytics to forecast future trends?

What is the ultimate goal of prescriptive analytics?

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

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

What is the primary objective of prescriptive analytics?

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

What technique is commonly used in predictive analytics?

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

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

What is an example of an application of prescriptive analytics?

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.