CS Professional · Artificial Intelligence, Data Analytics and Cyber Security - Laws and Practice · Data Analytics
A retail chain in Pune studies its past sales records to find out why sales of winter wear fell sharply last year. Which type of analytics is being used?
The retailer is using diagnostic analytics, because it examines historical data to explain why sales fell. Descriptive analytics would only report the fall, predictive would forecast future sales, and prescriptive would recommend actions to take.
- ADescriptive analytics
- BDiagnostic analyticsCorrect
- CPredictive analytics
- DPrescriptive analytics
Explanation
The chain is asking why an event happened, which is the purpose of diagnostic analytics. Descriptive analytics only summarises what happened, predictive forecasts what may happen, and prescriptive recommends actions. Here the focus is on causes of the fall, so diagnostic fits.
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