Types of Analytics Flashcards
Types of Analytics
Descriptive
Predictive
Prescriptive
the starting point of doing analytics for businesses
descriptive analytics
it uses data to understand the past and current business performance and make informed decisions
descriptive
uses already existing data from the enterprise
descriptive
it collects and consolidates data and transforms them into meaningful information displayed as charts and tables to monitor performance
descriptive
it is also the most reliable, as it uses data that is considered final and is already recorded in the system
descriptive
it answers the question, “What has happen?”
descriptive
analyzes past performance in an effort to predict the future by examining historical data, detecting patterns or relationships in these data and then extrapolating these relationships forward in time
predictive
This is the next step and in analytics implementation for an enterprise, and cannot exist without descriptive analytics, because past data need to exist first, before extrapolation can happen and patterns emerge
predictive
aims to answer the question, “What will happen?”
predictive
are used extensively for data exploration in prescriptive analytics
statictical methods
are used constantly in order to derive information from past data
regression
correlation
projection
uses optimization to identify the best alternative to minimize or maximize some objective
prescriptive
considered as Holy Grail of Analytics
Prescriptive
aims to answer the question, “Out of all these alternatives, what should we do?” or “What is the best that could happen?”
prescriptive
