Chapter 12.5 - Prescriptive Analytics

Question 1

How does Fandango apply prescriptive analytics?

Answer 1

Change ticket price offerings every hour. The company has analyzed the most desirable movie times by analyzing millions of show times, and then sets an optimal price for any given time based on the supply of show times and the demand for movie tickets. This maximizes their profit.

Question 2

How does Wayno (Google) Driverless Car use prescriptive analytics?

Answer 2

The car makes multiple decisions about what to do based on predictions of future outcomes. When the car approaches an intersection it must determine whether it is going straight, left, right based on the destination. The driverless car must also predict what might be coming. It analyzes the impact of a possible decision before it makes the decision.

Question 3

What is the impact of prescriptive analytics in the Oil and Gas Industry?

Answer 3

Analyze structured and unstructured data like images videos, sounds, to optimize fracking.
The prescriptive analytics can be used to optimize the material and equipment necessary to pump oil out of the ground.
Optimizes production, scheduling, inventory, and supply chain design