Question

1. Provide two reasons to why Prescriptive Analytics is considered the “highest level” of analytics? Illustrate with arguments.

Answer 1

Predictive analytics is a branch of advanced analytics, which is a combination of statistical techniques like data mining, modelling, and machine learning, etc that explores current as well as historical facts to make predictions about future or otherwise unknown events hence is often said as the use of statistics and modelling techniques to determine future performance.

Predictive analytics is said as the highest level of analytics and also the most complex to set up and program. Wide variety of data from both internal and external sources and uses several different techniques such as machine learning, image processing, applied statistics and natural language processing. Predictive analytics not only tries to predict the current period but also understand the reason behind its occurrence and how to take advantage of future opportunities. Benefits of predictive analytics are many like it provides healthy outcomes, as it helps to determine whether you need to go for the plan or not, Help to provide guidance within the workflow, it helps in making data more useful by telling you what to use.

The most frequent use of predictive analysis is in CRM, where it is being used for analytical analysis , Predictive analysis is being applied to the CRM to construct a comprehensive view of the customer. Predictive analysis is also being used by CRM for marketing campaigns, sales, and customer services.