Certificate in Business Data Analytics (CBDA) — Question 29

An insurance company has seen an upward trend in winter-related accidents over the past three years. The company has just completed an analytics study to better understand the primary reasons for these accidents and assess how many of the drivers were using winter tires. This analysis will help the company decide how to move forward with drivers not taking precautionary measures during winter.
What type of analysis will help in determining the primary reasons and percentage of those drivers with winter tires?

Answer options

Correct answer: D

Explanation

The correct answer, D, indicates that Descriptive and Diagnostic analysis can provide insights into the reasons behind the accidents and the percentage of drivers using winter tires. While Descriptive analysis (B) offers a summary of past events, it does not delve into causes. Prescriptive analysis (C) suggests actions but does not analyze past data, and Descriptive and Predictive analysis (A) focuses on summarizing data and forecasting future trends rather than identifying root causes.