Which statement correctly matches descriptive, predictive, and prescriptive analytics with an example?

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

Answer: (D)

These analytics types map to three practical roles in turning data into decisions: describing what happened, predicting what could happen, and prescribing what to do about it. Descriptive analytics focuses on past data and summarizes it, like total sales from last month. Predictive analytics uses that data to estimate future outcomes, such as forecasting next quarter’s sales. Prescriptive analytics goes a step further and suggests actions to achieve desired results, for example recommending pricing or inventory adjustments to optimize profit.

That combination—descriptive describing past data, predictive forecasting future outcomes, prescriptive suggesting actions—is the clearest, most complete way to pair each type with its typical function and an accompanying example. Other options blend or misstate the roles (for instance, implying descriptive predicts future or mixing up which type performs which task), which makes them less accurate representations of how these analytics categories differ.