Definition
Prescriptive Analytics is a type of analysis that supports the selection of an appropriate course of action by evaluating possible scenarios and their consequences.
Human Explanation
It answers the question: What should we do?
Why it Matters
It helps decision-makers select actions that support defined objectives.
Conceptual Boundary
Prescriptive Analytics does not make decisions on behalf of people. It provides recommendations based on data, models, objectives and constraints, while accountability remains with the decision-maker.
Practical Perspective
It uses optimisation models, scenario analysis and simulation to compare possible actions and their consequences.
Analytical Progression
- Descriptive: What happened?
- Diagnostic: Why did it happen?
- Predictive: What is likely to happen?
- Prescriptive: What should we do?
The progression moves from observation towards decision support. Each recommendation remains dependent on the quality of the preceding analysis.