Question
A company notices a sudden spike in product returns
during a specific quarter. Which type of analysis should be conducted to identify the root cause and predict future occurrences?Solution
Diagnostic analysis investigates the root causes of observed trends or anomalies. In this case, it can identify why returns spiked by analyzing factors like product quality, customer feedback, or shipping delays. Understanding the cause helps mitigate future occurrences. Option A : Descriptive analysis summarizes data but doesn’t identify causes. Option C : Prescriptive analysis provides recommendations but requires prior diagnostic insights. Option D : Predictive analysis forecasts trends without focusing on root causes. Option E : Sentiment analysis evaluates opinions and is less relevant to identifying causes of returns.
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