Certificate in Business Data Analytics (CBDA) — Question 57

A Human Resource manager recently learned that their competitor reduced employee attrition rates by 20% after implementing personality tests as part of their screening process. Intrigued by the idea, the manager suggests collecting data on personality tests and attrition rates over the next year. The data from this year is then analyzed to explore possible relationships.
What type of analytics has the team been asked to perform?

Answer options

Correct answer: D

Explanation

The team is conducting diagnostic analytics, which involves analyzing historical data to identify trends and relationships, such as the connection between personality tests and attrition rates. Predictive analytics would focus on forecasting future outcomes, descriptive analytics summarizes past data, and prescriptive analytics suggests actions based on data analysis, none of which align with the task at hand.