Question

Which of the following characteristics about Business Analytics is NOT true?

Group of answer choices
- Business Analytics is the study of data through statistical and operations analysis, the formation of predictive models, application of optimization techniques and the communication of these results to decision makers.
- Business analytics is used to gain insights that inform business decisions and can be used to automate and optimize business processes.
- Successful business analytics depends on data volume acquired, skilled analysts who understand the technologies and the business and an organizational commitment to the ROI of the data acquired.
- Business analytics is the use of fact-based data, statistical and quantitative analysis to measure past operations and performance to guide an organization's business planning.

Answer 1

The statement that is NOT true about Business Analytics is that it strictly uses data of past operations to guide business planning, as this field also involves predictive and prescriptive analytics that consider future actions.

Step-by-step explanation:

The student is asking which characteristic of Business Analytics is NOT true. To answer this, we must critically analyze each statement against the established concepts of Business Analytics. The first statement correctly outlines Business Analytics as a discipline involving statistical and operations analysis to develop predictive models and inform decision-making. Similarly, the second statement is accurate in asserting that Business Analytics aids in gaining insights for business decisions and process optimization. The third statement is also true, pointing out the dependency of Business Analytics on data volume, skilled analysts, and organizational commitment to data ROI.

However, the fourth statement seems to imply that Business Analytics strictly uses past operations and performance data to guide business planning, which could be misleading. While historical data is indeed significant, Business Analytics also encompasses real-time data processing, predictive modeling, and prescriptive analytics, which can guide future actions, not just planning based on past performance.

Therefore, the statement that is NOT true about Business Analytics is that it only uses fact-based data of past operations to guide an organization's business planning. This only gives a partial picture as Business Analytics also highly values predictive and prescriptive analytics, which look towards future possibilities and recommendations.