Which analytics type recommends actions to optimize outcomes?

Which analytics type recommends actions to optimize outcomes?

• A. Descriptive analytics
• B. Diagnostic analytics
• C. Predictive analytics
• D. Prescriptive analytics

Answer: (D)

Prescriptive analytics focuses on recommending actions to optimize outcomes. It goes beyond describing what happened or diagnosing why, and beyond predicting what might happen; it uses optimization, simulation, and decision analysis to propose concrete choices and show their likely effects, including trade-offs. For example, it might tell a business exactly how many units to reorder, what price to set, or which delivery routes to take to minimize costs while meeting service levels. Descriptive analytics summarizes past data; diagnostic analytics explains causes; predictive analytics forecasts future results. Because it directly provides recommended actions to improve results, it’s the best fit for the question.

Prescriptive analytics focuses on recommending actions to optimize outcomes. It goes beyond describing what happened or diagnosing why, and beyond predicting what might happen; it uses optimization, simulation, and decision analysis to propose concrete choices and show their likely effects, including trade-offs. For example, it might tell a business exactly how many units to reorder, what price to set, or which delivery routes to take to minimize costs while meeting service levels. Descriptive analytics summarizes past data; diagnostic analytics explains causes; predictive analytics forecasts future results. Because it directly provides recommended actions to improve results, it’s the best fit for the question.