In the context of data analytics, what is "descriptive analytics"?

Descriptive analytics refers to the analytical process that focuses on summarizing historical data to understand what has occurred in the past. This type of analytics typically involves the use of statistical methods and visualization tools to present findings based on prior data. For instance, descriptive analytics might include generating reports on sales figures, analyzing customer demographics, or tracking trends over time.

This approach is essential for organizations seeking to identify patterns or trends in their historical performance, which can inform decision-making and strategic planning. By effectively understanding and interpreting past data, businesses can gain valuable insights into their operations and market dynamics, facilitating improved performance and planning for the future.

Other choices involve different aspects of data analytics; for example, analyzing future trends falls under predictive analytics, while cleaning and transforming data pertains more to the data preparation phase. Predicting data outcomes is also part of a forward-looking perspective, which requires different techniques compared to the retrospective focus of descriptive analytics.