Descriptive Analytics Would Be More Likely to Use These Tools

question 50

Multiple Choice

Descriptive analytics would be more likely to use these tools in its analysis than other types of analytics?

• A) Totals, sums, averages, and subtotals
• B) Fuzzy matching, Benford's law, variance analysis
• C) Forecasting tools, regression, and classification
• D) Goal-seek analysis, what-if analysis

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Definitions:

Risk-Free Rate

The theoretical return on an investment with zero risk, typically represented by the yield on government securities.

Expected Rate

The rate of return that an investor anticipates earning on an investment without taking into account inflation or other factors that could affect the actual yield.

Liquidity Spreads

The difference in yield or cost between liquid (easily convertible to cash) assets and illiquid assets, often indicative of the liquidity premium required by investors.

Security A

A generic term used to represent a particular stock or financial instrument in theoretical examples.