Question

Picking an Analytic Approach to solve a problem is based on the type of question. Explain the given statement with suitable examples.

Hint:

Tip: Right question → Right method → Right action.

Answer 1

The selection of an appropriate analytic methodology is contingent upon the nature of the inquiry intended to be addressed by the data.
Distinct challenges necessitate varied methodologies:
1. Descriptive Analytics addresses inquiries concerning past events, encapsulated by the question: "What has transpired?".
Illustration: A business entity employs descriptive analytics to generate periodic sales summaries detailing aggregate revenue and quantities sold.
2. Diagnostic Analytics investigates the underlying causes of observed phenomena, answering: "Why did this occur?".
Illustration: In instances of declining sales, diagnostic analytics identifies contributing factors, such as cyclical patterns or inadequate promotional strategies.
3. Predictive Analytics forecasts future occurrences, answering: "What is the probable future outcome?".
Illustration: The utilization of historical data to forecast future consumer demand for inventory management purposes.
4. Prescriptive Analytics recommends optimal courses of action, answering: "What actions should be undertaken?".
Illustration: An aviation company leverages prescriptive analytics to optimize fare structures and seat assignments.
By aligning the analytical strategy with the research question, organizations can derive valuable intelligence and enhance decision-making processes.
Adopting an unsuitable methodology may result in wasted resources and erroneous conclusions.