Google Data Analytics Professional Certification Practice Test

Which term describes the practice of using past data to predict future occurrences?

1. Data-inspired decision-making

2. Algorithm

3. Quantitative analysis

4. Historical forecasting

The correct answer is: Data-inspired decision-making

The term that most accurately describes the practice of using past data to predict future occurrences is historical forecasting. This approach involves analyzing historical data trends and patterns to make informed predictions about future events or behaviors. It relies on the principle that past behaviors are often indicative of future outcomes. The other terms, while related to data analysis, do not precisely fit this definition. Data-inspired decision-making refers to the broader strategy of using data insights to guide decisions, but it does not specifically focus on the predictive aspect tied to historical data. An algorithm is a step-by-step procedure for calculations often used in data analysis, but it does not inherently relate to the concept of forecasting based on historical data. Quantitative analysis encompasses a wider array of statistical and mathematical techniques to assess data, but, similar to the previous options, it does not specifically refer to the practice of forecasting based on historical trends.