Which of these are examples of business analytics?
Groupthink
Portfolio analysis
Time-series forecast
Marketing plans
Advertising campaigns
The correct answer and explanation is :
The examples of business analytics from the list are:
- Portfolio analysis
- Time-series forecast
Explanation:
Business analytics refers to the use of data, statistical analysis, and mathematical models to analyze historical data, forecast future outcomes, and make informed decisions in a business context. Let’s break down why the two examples are relevant to business analytics:
- Portfolio Analysis: This involves evaluating a collection of investments or products to determine how they are performing relative to business objectives. It typically uses financial and performance data to assess risk, return, and market trends, which are core elements of business analytics. Portfolio analysis helps businesses make strategic decisions, optimize resource allocation, and improve overall performance by analyzing patterns and trends in past performance.
- Time-Series Forecast: Time-series forecasting is a key technique in business analytics that involves using historical data to predict future values, such as sales, market trends, or stock prices. The forecast is based on patterns observed in data over time. For example, predicting next quarter’s sales using previous sales data is a common use case of time-series forecasting. The goal of such forecasts is to help businesses make data-driven decisions to prepare for future demand or market changes.
Why the others are not examples of business analytics:
- Groupthink: This is a psychological phenomenon where a group of people make irrational or faulty decisions due to the desire for consensus. Groupthink is not an analytical approach and can actually hinder rational decision-making, making it irrelevant to business analytics.
- Marketing Plans: While marketing plans can incorporate analytics, they themselves are strategic documents or frameworks that guide a company’s marketing efforts. They are not inherently about analyzing data to inform business decisions.
- Advertising Campaigns: Similar to marketing plans, advertising campaigns are operational activities aimed at promoting a product or service. While data and analytics may be used to optimize these campaigns, advertising campaigns themselves are not considered business analytics.
In summary, portfolio analysis and time-series forecasting are both techniques grounded in business analytics, as they focus on using data to inform decision-making and predict future outcomes.