IIBA Certified Business Data Analyst (CBDA) Practice Test

Descriptive analytics is centered on understanding and interpreting historical data to identify trends and patterns. It leverages data from past events to provide insights into what has happened within a certain period. This type of analysis primarily involves examining raw data and summarizing it into an understandable format, such as reports, dashboards, or visualizations.

By focusing on historical events, descriptive analytics allows businesses to assess performance, yet it does not make forecasts or suggestions for future actions. This distinguishes it from other types of analytics where the focus is on predicting future outcomes or recommending actions based on data analysis. Thus, it serves as the foundational step in analytics by offering a clear picture of past performance, which is crucial for informed decision-making.