Question

Discuss the differences between descriptive analytics and predictive analytics. Give an example of when you may use each type.

Answer 1

Difference Between Descriptive Analytics and Predictive Analytics

• Descriptive analytics tells about the past that has happened and on the other hand predictive analytics helps to predict the future of the organization.
• Descriptive analytics is used when the organization wants to know all the aspects and elements that have to lead to the situation in which the organization is currently running and on the other hand, predictive analytics is used to know the future changes that can happen which can directly or indirectly affect the organization.
• Descriptive analytics uses data that are found in the records of the organization through which they can analyze and find the reason behind any incident that has happened in the past and on the other hand predictive uses the organizational performance data and predict the future performance in any certain situation that can arise in the future.
• For example, descriptive analytics can be used creating sales report of any previous particular period and compare with the present one and then calculate the difference and find the reason behind those differences and for predictive analytics, the organization uses the organizational performance bar chart and on the basis of that details and market-changing details they can predict what can be the organization performance in the near future.