ACCA Applied Knowledge · Business and Technology · The impact of advances in technology
A manufacturer's analytics team finds that last month's scrap rate rose sharply. They examine machine logs, shift data and supplier batches to establish that a particular supplier's material caused the increase. Which type of analytics is being used?
This is diagnostic analytics because the team is examining data to find out why scrap rose, identifying the supplier's material as the cause. Descriptive analytics would only report the increase, while predictive and prescriptive analytics look to future outcomes and recommended actions respectively.
- ADescriptive analytics
- BDiagnostic analyticsCorrect
- CPredictive analytics
- DPrescriptive analytics
Explanation
The team is investigating why an event happened, by drilling into data to find the cause. That is diagnostic analytics. Descriptive analytics would just report that scrap rose, and predictive would forecast future scrap levels.
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