As companies integrate data analytics and shift their focus towards the future, they need to utilize predictive analytics. This kind of analytics uses both historical data and statistical models to predict future outcomes. If a company is interested in looking more closely at its shipping department, then which of the following is a challenge this company might face using predictive analytics?
A) All decision makers are numerate, and they will be able to understand the outcomes presented.
B) The data is available in a variety of formats, all of which are usable.
C) The data is free of biases and errors as promised by the vendor they acquired the data from.
D) There is a high level of uncertainty around a potential situation.

Question

Quizplus · Accepted Answer

This question requires familiarity with data analytics and more specifically challenges faced when using predictive analytics. Choice D is correct because it accurately represents a challenge a company could face when using predictive analytics. The remaining choices are incorrect because they do not represent challenges that companies will face with most of the statements being false or incomplete.

As Companies Integrate Data Analytics and Shift Their Focus Towards