What Are Predictive Analytics

question 178

Multiple Choice

What are predictive analytics?

• A) The scientific process of transforming data into insight for making better decisions.
• B) Techniques that describe past performance and history.
• C) Techniques that extract information from data and use it to predict future trends and identify behavioral patterns.
• D) Techniques that create models indicating the best decision to make or course of action to take.

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Definitions:

Stockouts

Occur when an item is not in stock and cannot be provided to the customer, leading to potential sales loss and customer dissatisfaction.

Order Fill Rate

A metric that measures the percentage of customer or sales orders fulfilled from stock available at the time the order is placed.

Return on Assets (ROA)

A financial ratio that shows how profitable a company is relative to its total assets, indicating how efficient management is at using its assets to generate earnings.

Return on Net Worth

A measure of a corporation's profitability that reveals how much profit a company generates with the money shareholders have invested.