Data+ #1

What does Descriptive analytics tell you?

"What happened?" — it summarizes past/historical data.

Example: "We sold 500 units last month." Think: rear-view mirror.

What does Predictive analytics tell you?

"What will happen?" — uses past data/trends to forecast the future.

Example: "Based on trends, we'll sell 600 units next month." Think: crystal ball.

What does Prescriptive analytics tell you?

"What should we DO about it?" — recommends a specific action based on the data/prediction.

Example: "Increase ad spend by 10% to hit 600 units." Think: doctor's prescription.

What does Inferential analytics tell you?

"What can we conclude about a larger group, based on a smaller sample?"

Example: "We surveyed 100 customers, so we infer how all 10,000 customers feel." Think: jury reaching a verdict from limited evidence.