Which type of data would be analyzed using prescriptive analytics?

Study for the CIW Data Analyst Test. Prepare with flashcards and multiple choice questions, each with hints and explanations. Get ready for your exam!

Prescriptive analytics focuses on providing recommendations for future actions based on data analysis, often taking into account various scenarios and potential outcomes. This type of analytics helps organizations determine the best course of action by evaluating different variables that affect decision-making.

Data that informs decision-making for future strategies fits perfectly into this category because it involves analyzing data to prescribe specific actions or decisions aimed at achieving desired objectives. Organizations often use prescriptive analytics to optimize processes, improve performance, and make strategic decisions that align with their goals.

The other types of data mentioned serve different purposes. Historical sales data is primarily used for descriptive analytics, which looks at past performance to understand trends. Real-time customer feedback can be analyzed for immediate insights but does not inherently guide strategic future decisions. Data comparing competitor sales might be useful for competitive analysis or benchmarking but does not directly prescribe actions for future strategies like prescriptive analytics does. Thus, the correct answer emphasizes the forward-looking nature of prescriptive analytics in guiding decision-making for upcoming scenarios.

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