Which data analytic type answers the question, “What is likely to happen?”? [Refer to Exhibit 2.3.]

a. Diagnostic

b. Prescriptive

c. Conversion

d. Predictive

e. Descriptive

Data Analytic Question Answered Managerial Accounting Analysis Example Descriptive Diagnostic What is happening? Create a profit and loss analysis of current products (games, virtual reality headsets, controllers) based on historical financial performance data. Why is it happening? Conduct an analysis that identifies the drivers of Predictive What is likely to happen? Prescriptive What do I need to do? customers' most valued particular product preferences (features, platforms, consoles, multi-player capabilities). Forecast the financial impact (in terms of lost revenue) from the risk that competitors introduce new games with innovative and popular features. Build a model that informs employees about specific choices to make across the value chain (from game design to distribution to marketing to aftermarket customer interfaces) to optimize profitability.