Artificial intelligence business process

Descriptive, predictive and prescriptive analysis

Data analysis distinguishes between descriptive, predictive and prescriptive analysis. Descriptive analysis uses aggregation of data and data mining to gain new knowledge from the past and to answer the question in terms of factual context: “What happened?”. The predictive analysis is used in statistical models and forecasts to examine future developments and to answer the question “what could happen?”. Prescriptive analysis is used in optimization and simulation algorithms to advise on decision-making, and answers the question, “What should be done?”