University of Central Florida (UCF) QMB3602 Business Research for Decision Making Practice Exam 1

Descriptive analytics focuses on summarizing historical data to identify trends, patterns, and insights. It provides a clear understanding of what has happened in a business or organization. Financial reports serve as a prime example of descriptive analytics because they compile and present financial data over a specified period, allowing stakeholders to analyze performance indicators such as revenue, expenses, and profitability. By reviewing these reports, decision-makers can assess past performance and make informed decisions moving forward.

In contrast, market forecasts and predictive modeling are associated with predicting future outcomes based on current data, which aligns more closely with predictive analytics rather than descriptive analytics. Risk assessments, while they can involve historical data, typically focus on evaluating potential future risks and thus do not exemplify descriptive analytics as directly as financial reports do.