A large online ordering company collects the sales history of its customers. Using this historical data, the online company sends customized sales advertisements to a specific group of customers. Which data analytics method is being used?

A large online ordering company collects the sales history of its customers. Using this historical data, the online company sends customized sales advertisements to a specific group of customers. Which data analytics method is being used?

• indicative
• predictive
• descriptive
• prescriptive

Explanation: Data analytics, applied to Big Data, can be classified into three major types:

• Descriptive - provides information about the past state or performance of a person or an organization
• Predictive - attempts to predict the future, based on data and analysis, or what will happen next
• Prescriptive - predicts outcomes and suggests courses of actions that will hold the greatest benefit to an organization

In this case, the company predicts the customers who are more likely to purchase similar products, and sends those customers the targeted sales advertisements.

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