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

A retail chain in Pune analyses last year's sales to find why sales of a product fell in the monsoon months. Which type of analytics is this?

This is diagnostic analytics because the firm is examining historical data to find out why sales fell in the monsoon months. Predictive analytics forecasts future outcomes, and prescriptive analytics recommends actions, so neither fits an explanation of a past decline.

  1. APredictive analytics
  2. BDiagnostic analyticsCorrect
  3. CPrescriptive analytics
  4. DCognitive analytics

Explanation

Asking why something happened is diagnostic analytics. Predictive analytics asks what will happen, and prescriptive analytics recommends what action to take. Here the firm is explaining a past fall, so diagnostic is correct.

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