CS Professional · Artificial Intelligence, Data Analytics and Cyber Security - Laws and Practice · Data Analytics
Sunrise Pharma Ltd. wants analytics to estimate which of its vendors are most likely to breach contractual compliance obligations in the coming year, using past breach history, payment delays and audit findings. This is best classified as:
This is predictive analytics. The company applies historical vendor data to estimate the future likelihood of compliance breaches. Descriptive analytics would merely summarise past events, while prescriptive analytics would go further and recommend actions, which the scenario does not require.
- ADescriptive analytics, because it uses historical data
- BPredictive analytics, because it estimates future likelihood from past dataCorrect
- CPrescriptive analytics, because it always decides the contract terms automatically
- DCognitive-free reporting, because no statistical model is involved
Explanation
Using historical variables to estimate the probability of a future event such as a breach is predictive analytics. Although history is used, descriptive analytics only summarises what happened. Prescriptive analytics recommends actions, which is not the stated aim.
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