Q.No. 2 Max Marks 05

You are applying for a loan for the first time, millions of people around the world have applied for loans. Many of these loan recipients have paid back their loans in full and on time, but some of them have not. The bank wants to know whether you are more like those who have paid back their loans or more like those who defaulted. By comparing your credit history, financial situation, and other factors to the vast database of previous loan recipients, the bank can effectively assess how likely you are to default on a loan.

Similarly, Amazon.com has access to millions of previous purchases made by customers on its Web site. Amazon.com examines your previous purchases, the products you have viewed, and any product recommendations you have provided. Amazon.com then searches through its huge database for customers who are similar to you in terms of product pur chases, recommendations, and interests. Once similar customers have been identified, their purchases form the basis of the recommendations given to you.

The availability of massive amounts of data, improvements in analytic methodologies, and substantial increases in computing power have all come together to result in a dramatic upsurge in the use of analytical methods in business.

Please discuss the above mentioned statements along-with the list of tools can be used gather and apply analytics.

They answer must not be more than 400 words.