ACCA Strategic Professional · Advanced Performance Management · Management reports
Karvel Airlines uses its booking data to forecast demand next quarter and so decide how many flights to schedule on each route. In the classification of data analytics, which type of analytics is this?
This is predictive analytics. Karvel uses historical booking data to estimate what demand is likely to be next quarter. Descriptive analytics would only summarise past bookings, diagnostic would explain why they occurred, and prescriptive would recommend the best action to take.
- ADescriptive analytics, because it uses historical bookings
- BDiagnostic analytics, because it explains past demand patterns
- CPredictive analytics, because it estimates future demand from past dataCorrect
- DPrescriptive analytics, because it reports the number of bookings made
Explanation
Forecasting future demand from historical patterns is predictive analytics. Descriptive analytics only summarises what happened, and diagnostic analytics explains why. Prescriptive analytics recommends actions, and merely reporting bookings made is not that.
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