Summit CPA Review
BAR Data Analytics · Updated November 2026

Descriptive, Diagnostic, Predictive, Prescriptive: What Question Is the Analysis Answering?

What happened, why, what next, what should we do. That is the analytics ladder.

Descriptive

Answers what happened, such as historical sales, margins, or customer churn.

Diagnostic

Asks why it happened by investigating drivers and relationships.

Predictive

Estimates what is likely to happen next using data and models.

Prescriptive

Recommends what should be done or optimizes a decision.

The takeaway

Descriptive = what. Diagnostic = why. Predictive = what next. Prescriptive = what should we do.

Related Summit guides

RegressionContinue with a related Summit CPA Review guide.Scenario analysisContinue with a related Summit CPA Review guide.Data warehouseContinue with a related Summit CPA Review guide.

FAQ

Is forecasting descriptive analytics?

Generally it is predictive.

Does prescriptive analytics make recommendations?

Yes.

Is diagnostic analytics focused on causes?

Yes.