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Question 117 - CBDA discussion

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A 3rd party is marketing an application for financial institutions to use for credit scoring. This application is an example of what type of analytics?

A.
Descriptive analytics
Answers
A.
Descriptive analytics
B.
Prescriptive analytics
Answers
B.
Prescriptive analytics
C.
Exploratory
Answers
C.
Exploratory
D.
Inferential
Answers
D.
Inferential
Suggested answer: B

Explanation:

Explanation: Prescriptive analytics is the type of analytics that provides recommendations or suggestions for optimal actions or decisions based on data analysis. Prescriptive analytics uses techniques such as optimization, simulation, and decision analysis to generate and evaluate various scenarios and outcomes. Prescriptive analytics can help financial institutions to use credit scoring to determine the best loan offers, interest rates, and repayment terms for their customers, as well as to manage risk and compliance. Prescriptive analytics is the most advanced and complex type of analytics, as it requires a high level of data quality, integration, and modeling, as well as human judgment and domain expertise.Reference: Certification in Business Data Analytics (IIBA - CBDA), IIBA, accessed on January 20, 2024. Business Data Analytics Certification - CBDA Competencies | IIBA, IIBA, accessed on January 20, 2024. Guide to Business Data Analytics, IIBA, 2020, p. 15-16.

asked 18/09/2024
Bogdan Paun
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