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CMA Intermediate · Financial Management and Business Data Analytics · Introduction to Data Science for Business Decision-making

A manufacturer in Coimbatore reviews a monthly dashboard of last year's sales. Sales were ₹40 lakh in January and ₹46 lakh in February. The manager wants to explain WHY sales rose, by breaking the ₹6 lakh increase by region and product. Which analytics type is this, and what is the percentage rise in sales?

It is diagnostic analytics with a 15% rise. The increase of ₹6 lakh on the January base of ₹40 lakh gives 15%. Breaking the rise down by region and product explains why it happened, which is diagnostic work rather than descriptive summary or prediction.

  1. ADescriptive analytics; 13.0%
  2. BDiagnostic analytics; 15.0%Correct
  3. CDiagnostic analytics; 13.0%
  4. DPredictive analytics; 15.0%

Explanation

Percentage rise = 6/40 = 15%. Drilling down by region and product to find the cause of the change is diagnostic analytics. The 13.0% option wrongly uses the new figure (6/46) as base, and descriptive or predictive types do not explain causes.

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