US CMA Part 1 · Chapter 6 · Question 12 of 22
Which type of analytics recommends a course of action, for example by optimizing the delivery schedule that minimizes cost?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) Prescriptive analytics
Explanation
Descriptive analytics reports what happened, diagnostic analytics explains why, predictive analytics forecasts what is likely to happen, and prescriptive analytics recommends what should be done, often using optimization or simulation.
More Technology and Analytics MCQs
- Q14Which of the following is the best example of unstructured data?
- Q15A regression of monthly utility cost on machine hours has a coefficient of determination (R-squared) of 0.81. What does this indicate?
- Q16For a regression model, the total sum of squares is 50,000 and the sum of squared errors (residual sum of squares) is 8,000. What is the…
- Q17In a regression of delivery cost on miles driven, the slope coefficient is 3.6 and its standard error is 1.2. Using the common rule of…
- Q18A cost estimation equation was derived from data on production between 2,000 and 6,000 units per month. Why should managers be cautious…