The Difference Between Descriptive, Predictive, and Prescriptive Analytics

Descriptive analytics focuses on analyzing historical data to understand past performance and trends. It helps in answering the question of what happened.

Predictive analytics, on the other hand, uses statistical algorithms and machine learning techniques to forecast future outcomes based on historical data. It helps in answering the question of what is likely to happen.

Prescriptive analytics goes a step further by not only predicting future outcomes but also recommending actions to achieve desired outcomes. It helps in answering the question of what should be done.

Overall, while descriptive analytics explains what has happened, predictive analytics foresees what might happen, and prescriptive analytics provides insights on what actions to take for desired outcomes.