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ACCA Strategic Professional · Strategic Business Leader · Enabling success: disruptive technologies

Karvel Airlines analyses historical booking, weather and maintenance data to estimate which aircraft components are likely to fail in the next 30 days, so engineers can replace them before a fault occurs. Which type of analytics is this?

This is predictive analytics. Karvel uses historical data to forecast which components are likely to fail within 30 days. Descriptive analytics would merely summarise past failures, and diagnostic analytics would explain their causes, while prescriptive analytics would recommend actions.

  1. ADescriptive analytics, because it summarises past failures
  2. BDiagnostic analytics, because it explains why past failures happened
  3. CPredictive analytics, because it uses historical data to forecast likely future eventsCorrect
  4. DPrescriptive analytics only, because it recommends engineering staffing levels

Explanation

The key activity is forecasting which components are likely to fail in the next 30 days from historical patterns, which is predictive analytics. Descriptive analytics only reports what happened. Prescriptive analytics would recommend the best action to take given the forecasts, which is not the primary activity described.

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