Do BI reporting systems summarize current/past status specifically to predict future activities, or is prediction the domain of analytics/data mining?

Difficulty: Easy

Correct Answer: Invalid statement — prediction belongs to analytics, not basic reporting

Explanation:


Introduction / Context:
Reporting and analytics are related but distinct. Reporting answers “what happened/what is happening” with summaries and visuals. Predictive analytics answers “what is likely to happen next” by applying statistical or machine-learning methods. This question evaluates whether prediction is a native objective of reporting.


Given Data / Assumptions:

  • Reports aggregate and present; they rarely train statistical models.
  • Forecasts, propensity scores, and predictions are usually produced by analytical models.
  • Reports can display predictions generated elsewhere.


Concept / Approach:
The statement conflates purpose (reporting) with predictive capability (analytics). While reports may include future-looking numbers, those numbers are outputs of models, not of the reporting layer itself. Therefore, the statement is invalid.


Step-by-Step Solution:
Clarify roles: reporting = descriptive; analytics = predictive.Assess the claim that reporting “predicts.”Conclude that the claim is incorrect; prediction is outside basic reporting scope.


Verification / Alternative check:
BI suites separate “reporting” designers from “advanced analytics” modules or integrations that compute forecasts.


Why Other Options Are Wrong:
Materialized views, charts, or storage engines do not change the conceptual separation.


Common Pitfalls:
Assuming the presence of a forecast visual implies the report computed it; in practice, the model lives upstream.


Final Answer:
Invalid statement — prediction belongs to analytics, not basic reporting

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