Question

A store has 100 bathing suits of a certain style that go on sale from April 1 and wants to sell all of them by the end of June. Over each week of the 12-week selling season, they can make a decision to discount the price. They face two decisions: When to reduce the price and by how much? For a major national chain that may carry thousands of products, this can easily result in millions of decisions that store managers have to make. First they shoul collect historical data for similar products, such as the number of units sold, price at each point of sale, starting and ending inventories, and special promotions, newspaper ads, direct marketing ads, and so on, to understand what the results of past decisions achieved. Secondly, sales should be predicted based on pricing decisions. Finally, best set of pricing decisions should be determined to maximize the total revenue. Find which business analytics types used in this research? (descriptive/predictive/prescriptive

Answer 1

Answer:

Predictive research.

Explanation:

Descriptive research focusses on the characteristics of the data under observation and then research is carried out by keeping those characteristic as main focus.

Predictive research focus on the analytics of the data and statistical figures. It is used in business modelling and data mining.

Prescriptive research is a type of research for problems. This usually focusses on the measures so that problems do not occur again.