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What is the analytics type to address this investments question: "What is the return on investing in the stock market over the previous five years?"?

Question

What is the analytics type to address this investments question: "What is the return on investing in the stock market over the previous five years?"?

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Solution

The type of analytics to address this investment question is Descriptive Analytics.

Here's why:

  1. Identify the type of question: The question is asking for historical data over a specific period of time (the previous five years). It's not asking for a prediction or a what-if scenario, but rather a summary of what has already happened.

  2. Understand Descriptive Analytics: Descriptive Analytics is the type of business analytics that deals with the past. It uses data aggregation and data mining techniques to provide insight into the past and answer: “What has happened?”.

  3. Apply to the question: In this case, you're looking to understand the return on investment from the stock market over the

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