In short
Data analytics is commonly grouped into four types: descriptive (what happened), diagnostic (why it happened), predictive (what is likely to happen) and prescriptive (what should be done).
Key takeaways
- Descriptive analytics include summaries and dashboards, such as sales by region.
- Predictive analytics use techniques such as regression to forecast.
- Prescriptive analytics recommend actions, often using optimization.
Where it's tested
BAR: Data Analytics for Accounting — study notes, a five-minute revision sheet and practice questions.
Practise: 3 questions
Question 1 of 3 · 0 answered
An analyst builds a model that recommends the optimal inventory reorder quantity for each SKU based on demand forecasts and carrying costs. What type of analytics is this?