📢 Too many exams? Don’t know which one suits you best? Book Your Free Expert 👉 call Now!


    Question

    A bank analyses transaction history to identify

    customers likely to need a pre-approved personal loan. This is an example of:
    A Descriptive analytics Correct Answer Incorrect Answer
    B Predictive analytics Correct Answer Incorrect Answer
    C Diagnostic analytics Correct Answer Incorrect Answer
    D Observational research Correct Answer Incorrect Answer
    E Secondary research Correct Answer Incorrect Answer

    Solution

    Predictive analytics uses historical data to forecast future behaviour, such as loan demand probability. Why others are incorrect: Descriptive summarizes past data; Diagnostic explains why something happened; Observational research involves watching behaviour; Secondary research uses already published data. Banking Example: Algorithm identifying customers with rising credit card usage and offering instant loans.

    Practice Next
    ask-question