Certified Specialist Business Intelligence Practice Test

Descriptive analytics primarily functions by?

1. Providing a detailed narrative of current situations

2. Summarizing historic data patterns

3. Interviewing stakeholders for insights

4. Using industrial psychology for business applications

The correct answer is: Summarizing historic data patterns

Descriptive analytics primarily functions by summarizing historic data patterns. This type of analytics plays a fundamental role in understanding what has happened in the past by organizing and interpreting historical data, which allows businesses and analysts to identify trends, patterns, or anomalies within their datasets. For instance, organizations utilize descriptive analytics to generate reports that depict sales activity over a specific period, customer behaviors, or operational efficiency metrics. By focusing on summarizing past data, descriptive analytics provides a foundation for further analysis, enabling companies to make informed decisions based on prior outcomes or to identify opportunities for improvement. This capability is essential for understanding the context within which business operations take place and lays the groundwork for subsequent predictive and prescriptive analytics. In contrast, the other options do not align with the core function of descriptive analytics. Providing a detailed narrative of current situations may overlap with objectives of other analytical methods but does not capture the essence of summarizing historical data. Interviewing stakeholders for insights is more aligned with qualitative research techniques rather than data analytics. Using industrial psychology for business applications involves behavioral analysis and understanding personnel dynamics, which is outside the realm of what descriptive analytics encompasses.