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ACCA Strategic Professional · Advanced Performance Management · Data science and analytics

Karst Logistics wants to use historical delivery data, weather and traffic records to estimate which routes are likely to suffer delays next month so that it can adjust its delivery budgets in advance. Which type of analytics is being applied?

This is predictive analytics. Karst uses historical delivery, weather and traffic data to forecast which routes will probably be delayed. It does not merely summarise or explain the past, and it does not yet recommend a specific optimal action, which would be prescriptive analytics.

  1. ADescriptive analytics, because it summarises past delays
  2. BDiagnostic analytics, because it explains why past delays occurred
  3. CPredictive analytics, because it uses historical data to forecast likely future outcomesCorrect
  4. DPrescriptive analytics, because it forecasts which routes will be delayed

Explanation

The aim is to estimate future delays from past patterns, which is predictive analytics. Prescriptive analytics would go further and recommend the best action, such as the optimal re-routing. Descriptive and diagnostic analytics look backwards at what happened and why.

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