Prescriptive BI Capabilities Are Viewed as More Powerful Than Predictive

question 59

Multiple Choice

Prescriptive BI capabilities are viewed as more powerful than predictive ones for all the following reasons EXCEPT

• A) prescriptive BI gives actual guidance as to actions.
• B) understanding the likelihood of certain events often leaves unclear remedies.
• C) only prescriptive BI capabilities have monetary value to top-level managers.
• D) prescriptive models generally build on (with some overlap) predictive ones.

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Definitions:

Marginal Revenue

The extra revenue generated by the sale of an additional unit of a product or service.

Monopolist

An individual or business entity that is the sole provider of a particular good or service, enabling control over market prices.

Inverse Demand Function

A mathematical function that expresses price as a function of quantity demanded, illustrating how price varies with changes in demand.

Total Costs

The complete cost of production that includes both fixed and variable costs.