Certified Specialist Business Intelligence Practice Test

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Prepare for the Certified Specialist Business Intelligence Exam with this comprehensive test. Review multiple choice questions, get hints, explanations, and access study resources to excel in your business intelligence certification!

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What type of analytics is characterized by the ability to perform "what if" scenarios?

Descriptive analytics
Predictive analytics
Prescriptive analytics
Diagnostic analytics

The correct answer is: Predictive analytics

Predictive analytics is characterized by its ability to perform "what if" scenarios. This type of analytics involves using statistical algorithms and machine learning techniques to analyze historical data in order to make predictions about future events. By manipulating different variables and assessing potential outcomes, predictive analytics allows businesses to foresee various scenarios, helping them make informed decisions based on potential future developments. This capability to explore how changes in input variables can lead to different outcomes is essential in strategic planning and risk management. For instance, organizations can evaluate the potential impact of changing pricing strategies or entering new markets, thus guiding their operational and strategic planning effectively. In contrast, descriptive analytics focuses on summarizing historical data, diagnostic analytics seeks to understand the causes of past outcomes, and prescriptive analytics recommends actions based on data analysis but does not primarily center on scenario modeling like predictive analytics does.