Data analytics has been increasing in popularity as businesses realized these techniques provide unique insights that they would otherwise be unlikely to see. There are four main categories of data analytics each with its own benefits, complexities, and corresponding levels of insight provided to users. Which of the following is the most likely reason a company would choose to use predictive analytics?
A) A butcher wants to know why the cost of his products has been increasing lately.
B) A dog groomer wants to know what steps to take to grow their sales over the next two years.
C) A law firm wants to know how giving a year-end bonus would impact their profit.
D) A lawn care business wants to know how many likes their recent social media post received.

Question

Quizplus · Accepted Answer

This question requires familiarity with the four categories of data analytics and when and how to use each. Choice C is correct because it represents an accurate reason a law firm would utilize predictive analytics to address a specific need or concern. The remaining choices are incorrect because they each deal with one of the other three categories of analytics.

Data Analytics Has Been Increasing in Popularity as Businesses Realized