ACCA BT · Chapter 6 · Question 4 of 11
A retailer uses historical sales data, weather forecasts and local events information to estimate how much stock each store will need next week. What type of data analytics is this?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Predictive analytics
Explanation
Predictive analytics uses historical and current data to forecast what is likely to happen. Descriptive analytics summarises what has happened, diagnostic analytics explains why it happened, and prescriptive analytics goes further by recommending the best course of action.
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