Which analytics type is primarily concerned with "what should we do?"

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Study for the University of Central Florida QMB3602 Business Research for Decision Making Exam 1. Prepare with detailed questions and in-depth explanations to excel in your test! Enhance your decision-making skills effectively.

Prescriptive analytics focuses on recommending actions based on data analysis and modeling. It goes beyond merely understanding past events or predicting future outcomes. While descriptive analytics summarizes historical data and predictive analytics forecasts future trends based on past data, prescriptive analytics takes the next step by suggesting specific actions or strategies to achieve desired outcomes. This type of analytics utilizes algorithms and mathematical models to evaluate various decision paths, helping organizations determine the best course of action in various scenarios.

In contrast, descriptive analytics would provide insights into what has happened in the past, while predictive analytics estimates what might happen in the future. Exploratory analytics is more about investigating data for patterns without a specific decision-making framework in mind. Therefore, prescriptive analytics is distinctly focused on guiding decision-makers on "what should we do," making it the correct answer.