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DA0-002 · Question #24

A user needs a report that shows the main causes of customer churn rate in a three-year period. Which of the following methods provides this information?

The correct answer is B. Descriptive. To understand the main causes of customer churn rate over a three-year period, a descriptive analytics method is required. Descriptive analytics summarizes past data to understand what happened and why, which directly addresses identifying past causes.

Data Analysis

Question

A user needs a report that shows the main causes of customer churn rate in a three-year period. Which of the following methods provides this information?

Options

  • AInferential
  • BDescriptive
  • CPrescriptive
  • DPredictive

How the community answered

(38 responses)
  • A
    3% (1)
  • B
    89% (34)
  • C
    8% (3)

Why each option

To understand the main causes of customer churn rate over a three-year period, a descriptive analytics method is required. Descriptive analytics summarizes past data to understand what happened and why, which directly addresses identifying past causes.

AInferential

Inferential analytics involves making predictions or inferences about a population based on a sample, which is not the primary goal when simply identifying past causes.

BDescriptiveCorrect

Descriptive analytics focuses on summarizing past data to understand 'what happened' and 'why it happened.' Identifying the main causes of customer churn over a three-year period directly falls under this category, as it involves analyzing historical data to explain past events.

CPrescriptive

Prescriptive analytics recommends specific actions to take to achieve a desired outcome, answering 'what should be done,' which is beyond simply identifying causes.

DPredictive

Predictive analytics uses historical data to forecast future events or trends, answering 'what will happen,' which is different from explaining past causes.

Concept tested: Types of data analytics - descriptive

Source: https://learn.microsoft.com/en-us/azure/architecture/guide/data-analytics/analytics-overview#types-of-analytics

Topics

#Descriptive analytics#Data analysis types#Business intelligence#Reporting

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