Descriptive Analytics
What isdescriptive analytics?Descriptive analytics definition is like looking at the rear-view mirror to understand the road you have already travelled. It helps businesses and individuals make sense of what happened in the past by analyzing historical data.
For an example of descriptive analytics, a retail store might use descriptive analytics to look at last month's sales figures and see which products sold the most. By summarizing this data into charts or reports, it gives a clear picture of trends, patterns, and customer behaviour.
This type of analytics doesn't predict the future or explain why something happened. It's focused purely on understanding past events. Descriptive analytics is used in everyday situations, from checking your step count on a fitness app to a company reviewing last quarters performance.
In short, it helps people make informed decisions by providing insights from past data, turning raw numbers into easy-to-understand insights!
Frequently Asked Questions:
What is descriptive analytics?
It is the process of analysing historical data to understand past trends and performance.
How does descriptive analytics work?
It uses data aggregation, data mining, and reporting to summarise past events.
What is the main goal of descriptive analytics?
To give information about prior events in order to improve comprehension.
Is descriptive analytics predictive?
No, it only explains past data and does not forecast future outcomes.
What tools are used in descriptive analytics?
Google Data Studio, Tableau, Excel, and Power BI are some of the tools.
How is descriptive analytics different from diagnostic analytics?
Descriptive explains what happened, while diagnostic explains why it happened.
Can descriptive analytics help in decision-making?
Yes, it offers a clear picture of past performance to guide business decisions.
Which industries use descriptive analytics?
It is used in retail, healthcare, finance, manufacturing, and marketing.
In descriptive analytics, what kind of data is utilised?
Structured historical data from internal and external sources.
What are examples of descriptive analytics?
Monthly sales reports, website traffic summaries, and annual performance reviews.
