Western Governors University (WGU) BUS3130 D099 Sales Management Practice Exam

The type of analytics that suggests a course of action based on data is prescriptive analytics. This approach goes beyond simply analyzing past data (descriptive analytics) or understanding the reasons behind certain outcomes (diagnostic analytics) by providing recommendations for how to handle future scenarios.

Prescriptive analytics combines data analysis with various algorithms and models, often incorporating machine learning, to evaluate potential actions and their likely outcomes. This allows businesses or decision-makers to determine the best strategies or interventions to take based on their specific objectives and constraints.

While descriptive analytics focuses on what has happened and diagnostic analytics explores why something happened, prescriptive analytics actively prescribes solutions or actions, helping organizations make well-informed decisions and optimize outcomes. This is what makes prescriptive analytics distinct and effective in situations that require actionable insights drawn from data.

Ask an Examzify Tutor