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Predictive, prescriptive and descriptive analytics

Student’s Name

Department, University

Course Name

Professor’s Name

August 26, 2020

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Predictive, prescriptive and descriptive analytics

The descriptive analytics defines the nature of the event, and the prescriptive analytics

suggests actions on the underlying business problem. On the other hand, predictive analytics

determines the future outcome of the underlying problem after the prescriptions. Descriptive,

predictive and prescriptive analytics is business analytics processes, or steps followed to bring a

solution to a problem. The initial state is to describe or define the problem and is known as

descriptive analytics. Descriptive analytics tries to explain what happens in the past. The

description is done using most common tools such as business reports, dashboards, virtualization

tools etc. The next state is to predict on what to do next after the business has been defined.

Predictive analytics predicts the most likely event that will occur in the future in the underlying

business situation. In predictive analytics, several measures that might be undertaken are defined

using tools such as data mining, forecasting etc. to see future solutions. Lastly, the correct

measure is determined in the prescriptive state using optimization, decision modelling,

simulation tools etc. This stage gives a set of recommendations or actions that can be taken to

provide effectively, recommended outcomes.

Example

An organization which is running might want to look at its problem to determine the

future requirements. Descriptive analytics involves looking at the historical sales, financial

statements, customer data, etc. using observations, surveys etc. Predictive analytics would be to

determine the most likely sales to be achieved with a low number of salespersons. The number of

sales can then be predicted using a specific number of salespersons using automated means such

as data mining. The outcome might be the expected sales that can be made in the next year.

Finally, prescriptive analytics can determine the source of sales using a wide range of factors.
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The factors can be, the target customers, who are a potential customer, and even how to maintain

customers. The prescriptive analytics help the sales department reach the company goals.
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References

Prescriptive Analytics vs Predictive Analytics | Proponent. (2020). Retrieved August 26 2020,

from https://www.proponent.com/predictive-analytics-vs-prescriptive-

analytics/#:~:text=So%2C%20the%20difference%20between%20predictive,can

%20weigh%20against%20one%20another.