CS Professional · Artificial Intelligence, Data Analytics and Cyber Security - Laws and Practice · Data Analytics
A retail chain uses past purchase data and seasonal trends to estimate next quarter's demand and decide stock levels for each store. This is an example of:
Estimating next quarter's demand from past purchases and seasonal trends is predictive analytics, because it forecasts future outcomes from historical data. Descriptive analytics merely summarises what happened, while encryption and archiving concern securing and storing data rather than forecasting.
- APredictive analyticsCorrect
- BDescriptive analytics only
- CData encryption
- DData archiving
Explanation
Using historical and seasonal data to forecast future demand is predictive analytics. Descriptive analytics only summarises the past. Encryption and archiving are data protection and storage activities, not forecasting.
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