PADILLA, CHELSIE ROSE S.

BSBA HRM 4-4N

1. How does descriptive and predictive analytics work in prescriptive

analytics?

To glean useful insights and make wise decisions, descriptive, predictive, and
prescriptive analytics are frequently applied in that order. In the context of
prescriptive analytics, each of them functions as follows:

Descriptive Analytics: This process's first step is descriptive analytics. It

entails compiling historical information, organizing it, and summarizing
historical occurrences and trends. Descriptive analytics is used in conjunction
with prescriptive analytics to help explain what has occurred. Analyzing
historical business performance data, such as sales figures, clientele
demographics, and product preferences, is one example.

Predictive Analytics: Descriptive analytics provides a foundation for

predictive analytics, which expands on those findings. To predict upcoming
outcomes or trends, it makes use of statistical models, machine learning
algorithms, and historical data. Predictive analytics assists in providing an
answer to the question of what might occur in the context of prescriptive
analytics. For instance, it might forecast how various actions might affect the
business or make future sales predictions based on historical data and
outside variables.

Prescriptive Analytics: The last step is called prescriptive analytics, which

uses the findings from descriptive and predictive analytics to suggest a course
of action for achieving a particular objective. By recommending what to do, it
goes beyond offering perceptions and forecasts. The process of identifying
the scenario that most closely matches the desired outcome is described as
examining multiple scenarios with different sets of actions in the transcript.
The suggested actions are determined by the company's or user's goals and
objectives. Actionable advice is provided by prescriptive analytics to enhance
decision-making.

In conclusion, prescriptive analytics recommends the best courses of action

based on knowledge gained from the earlier stages, predictive analytics offers
forecasts, and descriptive analytics offers a historical overview. This
methodical procedure allows for outcome optimization and data-driven
decision-making.
1. What is your understanding in prescriptive analytics?

Personally, Prescriptive analytics is like having a competent advisor by your

side. It takes data from the past (what has happened) and data from the
present to predict what might happen in the future. Think of it as a way to
glimpse the future, but not with a crystal ball: instead it uses clever
mathematical and computational tools.

Once you get these predictions, it doesn't stop there. It goes further and
explores different paths or options you can take to achieve the desired result.
It's like trying out different strategies in a game to see which one helps you
win. These strategies could be things like spending more on advertising,
reducing production costs, or adjusting prices.

What's really cool is that it doesn't just give you a single answer. Instead, it
comes up with multiple options and tells you which one is likely to get you
closest to your goal. So, if your goal is to make more money, it will
recommend the strategy that's most likely to boost your profits. Prescriptive
analytics is useful for businesses and individuals because it helps you make
smarter decisions. It doesn't just tell you what's happening or what might
happen; it shows you the best way to get where you want to go.