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    Question

    According to Section 6 of the Indian Trusts Act, 1882, a

    trust becomes void if its purpose becomes unlawful after its creation due to changes in the law or other circumstances. The property is returned to the settlor or their legal representatives.  
    A Summarizing past data to understand historical trends. Correct Answer Incorrect Answer
    B Identifying the root cause of a problem based on historical data. Correct Answer Incorrect Answer
    C Forecasting future outcomes using statistical and machine learning models. Correct Answer Incorrect Answer
    D Recommending optimal courses of action based on predictive insights. Correct Answer Incorrect Answer
    E Transforming unstructured data into actionable dashboards and reports. Correct Answer Incorrect Answer

    Solution

    Predictive analytics is a branch of data analytics that uses statistical techniques, machine learning, and data modeling to predict future outcomes based on historical and current data. By leveraging techniques like regression, classification, and time series forecasting, predictive analytics answers questions like, "What is likely to happen?" It plays a critical role in various fields, such as predicting customer churn in businesses, forecasting demand in supply chains, or estimating risks in insurance underwriting. The predictive power stems from the use of algorithms that analyze patterns and trends, enabling decision-makers to anticipate future scenarios and prepare accordingly.   For example, in the insurance industry, predictive analytics is used to estimate the likelihood of claims based on policyholder demographics, historical data, and external factors. By doing so, insurers can better assess risks and optimize their pricing strategies.   Why Other Options are Wrong:  

    • A. Summarizing past data to understand historical trends:  
    This describes Descriptive Analytics , which focuses on understanding what happened in the past. It involves techniques such as aggregation, reporting, and visualizations. However, descriptive analytics does not involve forecasting future outcomes, which is the hallmark of predictive analytics.  
    • B. Identifying the root cause of a problem based on historical data:  
    This aligns with Diagnostic Analytics , which delves into the reasons behind past events. Diagnostic analytics uses techniques like drill-downs , data mining, and correlations to uncover causation but does not predict future outcomes.  
    • D. Recommending optimal courses of action based on predictive insights:  
    This is a description of Prescriptive Analytics , which builds on predictive analytics to suggest the best possible actions to achieve desired outcomes. While related, prescriptive analytics goes a step further than predictive analytics by incorporating optimization techniques.  
    • E. Transforming unstructured data into actionable dashboards and reports:  
    This is related to the process of data visualization and reporting, which is a part of descriptive analytics rather than predictive analytics. It does not involve statistical models or forecasting.  

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