Which of the following statements is TRUE?
A) Predictive analytics invokes advanced optimization tools to recommend a strategy or action.
B) Descriptive analytics analyzes past data to predict the future.
C) Prescriptive analytics characterizes and summaries data to facilitate understanding.
D) Descriptive analytics characterizes and summaries data to facilitate understanding.
E) Prescriptive analytics analyzes past data to predict the future.

Question

Quizplus · Accepted Answer

Descriptive analytics is the use of statistical and quantitative methods to describe past data and its characteristics. It is used to summarize and interpret data to facilitate understanding. Predictive analytics (A) uses data, statistical algorithms, and machine learning techniques to identify the likelihood of future outcomes based on historical data. Prescriptive analytics (C) goes beyond predictive analytics by not only predicting what may happen in the future, but also recommending specific actions to achieve the desired outcome. Therefore, (D) is the only statement that is true.

Which of the Following Statements Is TRUE