Lesson 1.2 Types of Data Analytics
Analytics is broadly classified into four categories:
- Descriptive Analytics
Explains what has happened in the past using historical data.
Examples:
- Monthly revenue report
- Total orders received
- Website traffic summary
- Diagnostic Analytics
Explores why something happened.
Examples:
- Investigating a drop in sales
- Identifying reasons for high customer churn
- Predictive Analytics
Predicts what is likely to happen next using statistical models and past data.
Examples:
- Forecasting sales
- Predicting customer churn
- Prescriptive Analytics
Recommends what actions should be taken.
Examples:
- Suggesting optimal product price
- Recommending marketing strategies