Which statement correctly describes the relationship among descriptive, predictive, and prescriptive analytics?

• A. Descriptive describes past data; Predictive forecasts future outcomes; Prescriptive suggests actions.
• B. Descriptive describes past data; Predictive forecasts past results; Prescriptive forecasts future results.
• C. Prescriptive describes past data; Descriptive forecasts future outcomes; Predictive suggests actions.
• D. Descriptive describes past data; Predictive forecasts future outcomes; Prescriptive suggests actions.

Answer: (D)

Understanding how analytics levels relate helps you see the progression from history to guidance. Descriptive analytics summarizes what happened in the past, giving you metrics like last quarter’s sales, averages, and totals. Predictive analytics takes that historical information and uses models to forecast what could happen next, such as predicted sales for the upcoming quarter. Prescriptive analytics goes a step further by using those forecasts to recommend actions you should take, like how much inventory to order or how to adjust pricing, within given constraints.

So the statement that fits best is: descriptive describes past data; predictive forecasts future outcomes; prescriptive suggests actions. This mirrors how each level builds on the previous one—from understanding the past, to predicting the future, to prescribing the optimal course of action.