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M9-01 lecture
M9-01 lecture
Review
Review
Descriptive analytics: What happened? What is happening?
Diagnostic analytics: Why did it happen? What are the root causes of past results? Can we explain why it happened?
Predictive analytics: Will it happen in the future? What is the probability some event will happen or occur? Is it forecastable?
Prescriptive analytics
Prescriptive analytics
Prescriptive analytics are analyses performed that identify best possible options given constraints or changing conditions.
Questions asked
Questions asked
What should we do, based on what we expect will happen?
How do we optimize our performance based on potential constraints?
Comparison of predictive and prescriptive analytics
Comparison of predictive and prescriptive analytics
Both predictive and prescriptive analytics forecast future outcomes. But, prescriptive analytics goes one step further and helps make specific recommendations for management to consider based on what they expect will happen. They examine a variety of scenarios, adjusting the constraints and conditions, to help assess the outcomes of each to inform decisions.
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