Predictive Data Analytics - Forecasting tools are used to predict how a sample population is going to behave based on past precedent. A classic example is forecasting stock prices or predicting consumer behaviorDescriptive Data Analytics - Simply put, it is a numeric that represents a variable. Your book states that the world Population is 7-Billion in 2015.....this is descriptive. Or gas prices today are $3.50 per gallonPrescriptive Data Analytics - Like your book states, it is a methodology that seeks to make decisions (prescription) based on Descriptive data. The most classic example is the U.S. Census. Census Workers go from door-to-door asking people in households questions such as "how many people live in your home?" "What are their ages?" "What are their gender". The answers to these questions provide the U.S. Government with the information they need in order to provide services that will support the Constituency in a particular geographic region or area.Of the 3 types of Data Analytics, which one do you find the most interesting and why?

Answered: Predictive Data Analytics - Forecasting…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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Predictive Data Analytics - Forecasting tools are used to predict how a sample population is going to behave based on past precedent. A classic example is forecasting stock prices or predicting consumer behavior
Descriptive Data Analytics - Simply put, it is a numeric that represents a variable. Your book states that the world Population is 7-Billion in 2015.....this is descriptive. Or gas prices today are $3.50 per gallon
Prescriptive Data Analytics - Like your book states, it is a methodology that seeks to make decisions (prescription) based on Descriptive data. The most classic example is the U.S. Census. Census Workers go from door-to-door asking people in households questions such as "how many people live in your home?" "What are their ages?" "What are their gender". The answers to these questions provide the U.S. Government with the information they need in order to provide services that will support the Constituency in a particular geographic region or area.

Of the 3 types of Data Analytics, which one do you find the most interesting and why?

Expert Solution

Step 1

Descriptive data analysis

Descriptive data analysis determines the state of any business. Descriptive analysis processes a large amount of data rearrange or redesign it into an easily decipherable form such as charts and tables. This data or information can be developed from any historical event, statistics, trend, and any particular time frame. The objective of these types of analysis is to learn from the past. For example- analyzing trends of seasonal purchasing to evaluate the best time to launch a new product.

Predictive data analysis

Predictive analysis plays a crucial role because an organization is required past data to make forecasts or predictions for the future. Descriptive analysis determines the past scenarios or what happened in the past, whereas predictive analysis determines what might happen in the upcoming time. For example- Banks use credit scores to determine whether the candidate is applicable to the loan or not.