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Which of the following describes a prescriptive analytics method?

Multiple choice question.

A. Extract value from data
B. Results are analyzed to improve decision making
C. Designed to explore the data,
D. This method will classify or predict new records

User Ravi Sevta
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1 Answer

2 votes

Final answer:

Prescriptive analytics is characterized by analyzing results to improve decision making, prescribing actions based on predicted outcomes, and suggesting strategies to address future scenarios.

Step-by-step explanation:

A prescriptive analytics method is best described by option B: Results are analyzed to improve decision making. Prescriptive analytics involves the use of data analysis to not only predict outcomes but also to recommend actions that can positively affect those outcomes. Unlike descriptive analytics, which simply explains what has happened, or predictive analytics, which forecasts what might happen, prescriptive analytics aims to prescribe solutions and strategies.

In practice, this type of analytics considers various possible decisions and suggests actions to take based on the predicted outcomes. It answers the question "What should we do?" It uses a combination of advanced tools and technologies, including mathematical models, algorithms, and machine learning techniques to process complex data and provide actionable insights. For example, in supply chain management, prescriptive analytics might suggest different inventory levels for products based on the predicted demand and supply conditions, helping to optimize stock levels and reduce costs.

User Alexbilbie
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