Question

Which of the following is an example of Descriptive Analytics?

1. Conducting market analysis in order to forecast the amount of sales in the next periods.
2. Summarizing the results of marketing campaigns.
3. Assessing risk in regard to pricing and premium information for clients of an insurance company.
4. Estimating customer preferences and recommending products to customers based on past purchases and search history.

Answer 1

Summarizing the results of marketing campaigns (Option 2) is an example of Descriptive Analytics as it involves organizing and summarizing past data without making predictions or inferences.

Step-by-step explanation:

An example of Descriptive Analytics among the provided options is Summarizing the results of marketing campaigns.

Descriptive analytics involves organizing and summarizing data to describe past events or activities.

This can include calculations of mean or median values, graphical representation of data, and standard deviations to understand the distribution of data points.

Descriptive statistics like these do not predict or infer future events but rather focus on understanding and presenting what has already happened.

Option 1, forecasting sales, is an example of predictive analytics; it attempts to predict future outcomes based on historical data.

Option 3, assessing risk for insurance pricing, is part of risk analysis, which can involve predictive and prescriptive analytics.

Option 4, estimating customer preferences for product recommendations, involves predictive analytics, as it attempts to predict customer behavior based on historical data.

Hence, the correct answer is Option 2.