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Types of Data Analytics

The document discusses four major types of data analytics: predictive, descriptive, prescriptive, and diagnostic. Predictive analytics uses data to determine probable outcomes and make predictions, while descriptive analytics analyzes past data to understand performance. Prescriptive analytics suggests actions based on predictions and their implications, and diagnostic analytics uses historical data to find patterns and solve problems.

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SHIVANI S M
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52 views3 pages

Types of Data Analytics

The document discusses four major types of data analytics: predictive, descriptive, prescriptive, and diagnostic. Predictive analytics uses data to determine probable outcomes and make predictions, while descriptive analytics analyzes past data to understand performance. Prescriptive analytics suggests actions based on predictions and their implications, and diagnostic analytics uses historical data to find patterns and solve problems.

Uploaded by

SHIVANI S M
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Data analytics is an important field that involves the process of collecting, processing, and

interpreting data to uncover insights and help in making decisions. Data analytics is the practice of
examining raw data to identify trends, draw conclusions, and extract meaningful information. This
involves various techniques and tools to process and transform data into valuable insights that can
be used for decision-making

Types of Data Analytics


There are four major types of data analytics:

1. Predictive (forecasting)

2. Descriptive (business intelligence and data mining)

3. Prescriptive (optimization and simulation)

4. Diagnostic analytics

Predictive Analytics

Predictive analytics turn the data into valuable, actionable information. predictive analytics
uses data to determine the probable outcome of an event or a likelihood of a situation
occurring. Predictive analytics holds a variety of statistical techniques from modelling,
machine learning, data mining, and game theory that analyze current and historical facts to
make predictions about a future event. Techniques that are used for predictive analytics are:

• Linear Regression

• Time Series Analysis and Forecasting


• Data Mining

Basic Cornerstones of Predictive Analytics

• Predictive modeling

• Decision Analysis and optimization

• Transaction profiling

Descriptive Analytics

Descriptive analytics looks at data and analyze past event for insight as to how to approach
future events. It looks at past performance and understands the performance by mining
historical data to understand the cause of success or failure in the past. Almost all
management reporting such as sales, marketing, operations, and finance uses this type of
analysis.

The descriptive model quantifies relationships in data in a way that is often used to classify
customers or prospects into groups. Unlike a predictive model that focuses on predicting the
behavior of a single customer, Descriptive analytics identifies many different relationships
between customer and product.

Common examples of Descriptive analytics are company reports that provide historic
reviews like:

• Data Queries

• Reports

• Descriptive Statistics

• Data dashboard

Prescriptive Analytics

Prescriptive Analytics automatically synthesize big data, mathematical science, business rule,
and machine learning to make a prediction and then suggests a decision option to take
advantage of the prediction.

Prescriptive analytics goes beyond predicting future outcomes by also suggesting action
benefits from the predictions and showing the decision maker the implication of each
decision option. Prescriptive Analytics not only anticipates what will happen and when to
happen but also why it will happen. Further, Prescriptive Analytics can suggest decision
options on how to take advantage of a future opportunity or mitigate a future risk and
illustrate the implication of each decision option.

For example, Prescriptive Analytics can benefit healthcare strategic planning by using
analytics to leverage operational and usage data combined with data of external factors such
as economic data, population demography, etc.
Diagnostic Analytics

In this analysis, we generally use historical data over other data to answer any question or for
the solution of any problem. We try to find any dependency and pattern in the historical data
of the particular problem.

For example, companies go for this analysis because it gives a great insight into a problem,
and they also keep detailed information about their disposal otherwise data collection may
turn out individual for every problem and it will be very time-consuming. Common
techniques used for Diagnostic Analytics are:

• Data discovery

• Data mining

• Correlations

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