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    Question

    Which of the following analytics types is most suitable

    for answering the question, "What should we do to achieve the best outcome?"
    A Descriptive Analytics Correct Answer Incorrect Answer
    B Diagnostic Analytics Correct Answer Incorrect Answer
    C Predictive Analytics Correct Answer Incorrect Answer
    D Prescriptive Analytics Correct Answer Incorrect Answer
    E Exploratory Analytics Correct Answer Incorrect Answer

    Solution

    Prescriptive analytics is the highest level of analytics and aims to recommend specific actions or strategies to achieve desired outcomes. It uses optimization algorithms, simulation techniques, and predictive models to evaluate different scenarios and determine the best course of action. For example, in the context of a logistics company, prescriptive analytics can suggest the most efficient delivery routes based on predictive weather patterns, traffic conditions, and package delivery schedules. By answering the question "What should we do?" prescriptive analytics helps organizations move beyond insights to actionable recommendations.   Why Other Options are Wrong:  

    • A. Descriptive Analytics: Descriptive analytics is about understanding historical data and trends. It answers questions like "What happened?" but does not involve recommending future actions.  
    • B. Diagnostic Analytics: Diagnostic analytics focuses on understanding why something happened, using methods like root cause analysis. While valuable for learning from past events, it does not provide recommendations for future actions.  
    • C. Predictive Analytics: Predictive analytics forecasts future events based on past data but does not suggest specific actions to take. For example, while it may predict an increase in customer demand, it does not recommend how to manage inventory.  
    • E. Exploratory Analytics: Exploratory analytics involves investigating data to uncover patterns and relationships without a specific goal. It is often used in the initial stages of data analysis and does not answer prescriptive questions.  

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