Certified Specialist Business Intelligence Practice Test

What is the role of prescriptive analytics?

1. To describe past performance

2. To predict future outcomes

3. To recommend action based on data

4. To create promotional materials

The correct answer is: To recommend action based on data

The role of prescriptive analytics is to recommend actions based on data. This type of analytics goes beyond simply telling you what has happened or what is likely to happen; it provides specific guidance on how to achieve desired outcomes. By analyzing data and considering various scenarios, prescriptive analytics helps decision-makers determine the best course of action, taking into account the potential impacts of different choices. This process often involves advanced techniques such as optimization and simulation to evaluate possible strategies and their effects. In contrast, the other roles mentioned play different parts in the analytics spectrum. Descriptive analytics focuses on understanding past performance by summarizing historical data, while predictive analytics is concerned with forecasting future trends and behaviors based on existing data. Creating promotional materials falls outside the realm of analytics altogether, as it pertains more to marketing and content creation rather than data analysis and action recommendations.