Predictive data analysis is about

Predictive data analysis is about

• A. Transforming data for readability
• B. Automating processes
• C. Making forecasts (Hi, Lo Method)
• D. Confirming hypotheses

Answer: (C)

Predictive data analysis is about forecasting future outcomes based on patterns and relationships found in historical data. The goal is to produce estimates of what will happen next—such as future sales, demand, or risks—to support planning and decision-making. A simple forecasting approach like the Hi–Lo Method illustrates this focus by using past high and low values to predict the next period. In contrast, transforming data for readability is about cleaning and presenting data, automating processes is about making workflows run automatically, and confirming hypotheses is about testing ideas rather than predicting future values.

Predictive data analysis is about forecasting future outcomes based on patterns and relationships found in historical data. The goal is to produce estimates of what will happen next—such as future sales, demand, or risks—to support planning and decision-making. A simple forecasting approach like the Hi–Lo Method illustrates this focus by using past high and low values to predict the next period. In contrast, transforming data for readability is about cleaning and presenting data, automating processes is about making workflows run automatically, and confirming hypotheses is about testing ideas rather than predicting future values.