Certified Specialist Business Intelligence Practice Test

What is the primary purpose of prescriptive analysis in business intelligence?

1. Predict future events

2. Diagnose problems

3. Correct descriptive analysis misapplications

4. Indicate what should be done

The correct answer is: Indicate what should be done

The primary purpose of prescriptive analysis in business intelligence is to indicate what should be done in order to achieve desired outcomes. This type of analysis goes beyond simply predicting future events or diagnosing problems; it involves utilizing algorithms, simulations, and optimization techniques to suggest specific actions in response to various scenarios. Essentially, prescriptive analysis provides actionable recommendations based on the insights derived from data analysis. In the context of business intelligence, prescriptive analysis helps organizations make informed decisions by evaluating potential strategies and their projected impacts. This capability is crucial for companies aiming to enhance operational efficiency, optimize resource allocation, and identify the best course of action in complex situations. By taking into account various factors and constraints, prescriptive analysis empowers decision-makers to implement strategies that align with their objectives and improve overall performance.