Which type of analytics is designed to recommend actions based on data analysis?

Which type of analytics is designed to recommend actions based on data analysis?

• A. Descriptive Analytics
• B. Predictive Analytics
• C. Prescriptive Analytics
• D. Quantitative Analytics

Answer: (C)

Prescriptive analytics is specifically formulated to recommend actions based on the insights derived from data analysis. This type of analytics goes beyond simply analyzing past data or predicting future outcomes; it provides guidance on what steps to take to achieve desired goals or outcomes. Prescriptive analytics utilizes a variety of techniques, including optimization and simulation, to assess potential decisions and their implications. It not only considers the "what" and "why" of data (as descriptive and predictive analytics do) but also the "how," ensuring that users receive actionable advice tailored to specific situations. This makes it particularly valuable in decision-making environments where multiple factors and constraints must be considered. In contrast, descriptive analytics focuses on summarizing historical data to understand what has happened, while predictive analytics aims to forecast future trends based on historical patterns. Quantitative analytics involves numerical data analysis, which can be a component of any of the aforementioned types but does not specifically address the action-oriented nature of prescriptive analytics.

Prescriptive analytics is specifically formulated to recommend actions based on the insights derived from data analysis. This type of analytics goes beyond simply analyzing past data or predicting future outcomes; it provides guidance on what steps to take to achieve desired goals or outcomes.

Prescriptive analytics utilizes a variety of techniques, including optimization and simulation, to assess potential decisions and their implications. It not only considers the "what" and "why" of data (as descriptive and predictive analytics do) but also the "how," ensuring that users receive actionable advice tailored to specific situations. This makes it particularly valuable in decision-making environments where multiple factors and constraints must be considered.

In contrast, descriptive analytics focuses on summarizing historical data to understand what has happened, while predictive analytics aims to forecast future trends based on historical patterns. Quantitative analytics involves numerical data analysis, which can be a component of any of the aforementioned types but does not specifically address the action-oriented nature of prescriptive analytics.