What analysis method focuses on aggregating historical data for insights?

What analysis method focuses on aggregating historical data for insights?

• A. Hot path analytics
• B. Batch processing
• C. Predictive analytics
• D. Descriptive analytics

Answer: (D)

The chosen answer is descriptive analytics, which emphasizes the aggregation and examination of historical data to uncover insights and patterns. This method is primarily concerned with understanding past events and trends by summarizing the collected data, often through reporting tools and visualization techniques. Descriptive analytics provides a foundation for decision-making by offering a clear representation of what has occurred, facilitating performance tracking, and identifying areas for improvement. It answers questions like “What happened?” and “What are the historical trends?” which are crucial for any analysis aimed at understanding prior performance or behavior. In contrast, the other methods listed serve different purposes. Hot path analytics focuses on real-time data processing and analytics, aiming to provide immediate insights from current data streams. Batch processing involves collecting and processing data in groups at scheduled times, which can delay the availability of insights. Predictive analytics, on the other hand, aims to forecast future events based on identified patterns and historical data, making it forward-looking rather than centered on historical aggregation. Thus, descriptive analytics is the method that specifically aggregates historical data to generate insights about past performance, aligning perfectly with the question's focus.

The chosen answer is descriptive analytics, which emphasizes the aggregation and examination of historical data to uncover insights and patterns. This method is primarily concerned with understanding past events and trends by summarizing the collected data, often through reporting tools and visualization techniques.

Descriptive analytics provides a foundation for decision-making by offering a clear representation of what has occurred, facilitating performance tracking, and identifying areas for improvement. It answers questions like “What happened?” and “What are the historical trends?” which are crucial for any analysis aimed at understanding prior performance or behavior.

In contrast, the other methods listed serve different purposes. Hot path analytics focuses on real-time data processing and analytics, aiming to provide immediate insights from current data streams. Batch processing involves collecting and processing data in groups at scheduled times, which can delay the availability of insights. Predictive analytics, on the other hand, aims to forecast future events based on identified patterns and historical data, making it forward-looking rather than centered on historical aggregation.

Thus, descriptive analytics is the method that specifically aggregates historical data to generate insights about past performance, aligning perfectly with the question's focus.