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Multiple Choice

Which category of analytics is used to summarize data and describe what has happened?

Descriptive analytics focuses on summarizing historical data to describe what happened. It uses simple measures and visuals—totals, averages, counts, distributions, and dashboards—to provide a clear picture of past performance. For example, a monthly sales report showing total revenue, average order value, and transaction counts tells you what occurred during that period. This sets the stage for deeper analysis by offering a clear summary before exploring why it happened (diagnostic), what might happen next (predictive), or what actions to take (prescriptive).

Descriptive analytics focuses on summarizing historical data to describe what happened. It uses simple measures and visuals—totals, averages, counts, distributions, and dashboards—to provide a clear picture of past performance. For example, a monthly sales report showing total revenue, average order value, and transaction counts tells you what occurred during that period. This sets the stage for deeper analysis by offering a clear summary before exploring why it happened (diagnostic), what might happen next (predictive), or what actions to take (prescriptive).