4.2 - Analysis Types

Question 1

Why is it important to understand different types of analytics?

Answer 1

Different types of analytics answer different questions and guide decision-making appropriately.

Question 2

Name the four main types of analytics.

Answer 2

Descriptive, Diagnostic, Predictive, Prescriptive

Question 3

What is descriptive analytics used for?

Answer 3

Summarizing and understanding past and current data to identify trends and patterns.

Question 4

Give an example of descriptive analytics.

Answer 4

Example: Sales reports showing monthly revenue totals.

Question 5

What is diagnostic analytics used for?

Answer 5

Understanding why something happened by examining causes and relationships in the data.

Question 6

Give an example of diagnostic analytics.

Answer 6

Example: Investigating why a product’s sales dropped in a specific region.

Question 7

What is predictive analytics used for?

Answer 7

Anticipating future outcomes or trends based on historical data.

Question 8

Give an example of predictive analytics.

Answer 8

Example: Forecasting next quarter’s demand for a product.

Question 9

What is prescriptive analytics used for?

Answer 9

Recommending actions or strategies to optimize outcomes based on predictions and objectives.

Question 10

Give an example of prescriptive analytics.

Answer 10

Example: Suggesting the optimal marketing budget allocation to maximize sales.

Question 11

______ analytics answers “what happened?”, while ______ analytics answers “why it happened?”.

Answer 11

Descriptive, Diagnostic

Question 12

______ analytics predicts future outcomes, and ______ analytics recommends actions.

Answer 12

Predictive, Prescriptive