Certified Specialist Business Intelligence Practice Test

Which example illustrates the use of predictive analytics?

1. Calculating patient wait times

2. Estimating labor hours needed for the next shift

3. Reviewing patient satisfaction scores

4. Analyzing historical cost data

The correct answer is: Estimating labor hours needed for the next shift

The choice that illustrates the use of predictive analytics focuses on estimating future outcomes based on historical data and trends. In this particular scenario of estimating labor hours needed for the next shift, predictive analytics involves analyzing past scheduling data, employee hours, demand levels, and other relevant variables to forecast how many labor hours will be required to meet anticipated needs. This approach allows organizations to optimize staffing levels and improve operational efficiency by utilizing data-driven insights. Predictive analytics aims to provide foresight, enabling businesses to make informed decisions about future resources and requirements, which is exactly what is occurring in this case. The analysis uses historical patterns and trends to predict future labor requirements, demonstrating how predictive analytics can be applied in workforce management. In contrast, options like calculating patient wait times or reviewing patient satisfaction scores focus more on descriptive analytics, which summarizes past performance or current conditions rather than anticipating future events. Analyzing historical cost data provides useful context and insight into past financial performance but does not inherently involve predicting future costs or trends based on that data.