What is descriptive vs diagnostic vs predictive vs prescriptive analytics?

< 1 min read

Descriptive analytics summarizes historical data to show what happened.
In one project, sales dashboards showing last month’s revenue and top products were descriptive.
Diagnostic analytics explains why something happened.
We used drill-through and variance analysis to find why a region’s sales dropped.
Predictive analytics forecasts future outcomes using trends or statistical models.
For example, we predicted next quarter’s demand for each product category.
Prescriptive analytics recommends actions to achieve a desired outcome.
We suggested optimal inventory levels and promotions based on forecasted demand.
Each type moves from hindsight (descriptive) to foresight and actionable guidance (prescriptive).

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