What classifies analytics as descriptive, predictive, or prescriptive?

The classification of analytics into descriptive, predictive, and prescriptive categories is determined by the fundamental question it seeks to answer (its purpose) and the statistical or computational techniques it employs (its methods). Descriptive analytics summarizes past data to show what happened. Predictive analytics uses statistical models and forecasting techniques to understand what could happen. Prescriptive analytics uses optimization and simulation to advise on what should be done. The combination of purpose and method defines each category.

A. Sample size is a consideration for statistical validity, not a primary classifier of the type of analytics. Technique is only part of the answer.

B. Data validity and reliability are prerequisites for any meaningful analysis, not criteria for classifying the type of analysis being performed.

D. The software used is a tool for implementation; various software packages can perform all three types of analytics.

1. Davenport, T. H. (2013). Analytics 3.0. Harvard Business Review, 91(12), 64-72. (This article outlines the evolution and classification of analytics, emphasizing their purpose and capabilities).

2. Lustig, I., Dietrich, B., Johnson, C., & Dziekan, C. (2010). The Analytics Journey. Analytics Magazine, INFORMS. (This publication details the progression from descriptive to prescriptive analytics, defining each by its business purpose and enabling methods).

3. MIT Sloan School of Management. (n.d.). Business Analytics: From Data to Decisions. MIT OpenCourseWare. (Course materials often distinguish the three types of analytics based on the questions they answer and the techniques used, such as optimization for prescriptive analytics).