Data analytics can be divided into 4 types depending on the objective. What type should you use if your objective is to present likely options of what might happen?

Using predictive analytics is the most appropriate choice when your objective is to present likely options of what might happen in the future. This type of analysis employs statistical algorithms and machine learning techniques to analyze historical data and identify patterns that can forecast future outcomes. By leveraging past data trends, predictive analytics helps organizations anticipate events and make informed decisions based on probable future scenarios.

Predictive analytics is particularly valuable in numerous fields such as finance for risk assessment, manufacturing for anticipating maintenance needs, and marketing for predicting consumer behavior. By using this approach, organizations can prepare for various potential scenarios, which enhances their strategic planning and operational efficiency.

Descriptive analytics focuses on summarizing historical data to understand what has happened in the past. In contrast, prescriptive analytics seeks to recommend actions based on the analysis, and diagnostic analytics explains why something happened by analyzing data trends and patterns. Therefore, predictive analytics stands out for its forward-looking nature, emphasizing future possibilities rather than just past events or recommended actions.