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Evaluating and selecting prescriptive analysis

Evaluating and selecting prescriptive analysis

From the course: Certified Analytics Professional (CAP) Cert Prep

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Evaluating and selecting prescriptive analysis

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- [Instructor] Prescriptive methods revolve around the concept of optimization. They allow you to test different scenarios to eventually pick the option that produces the best outcome. One of the prescriptive methodologies takes on the optimization problem as solving a mathematical problem. If the goal is to minimize wait time, we can create a mathematical function f(x) and we'll attempt to find the best way to minimize f(x). We also need to define constraints that go along with f(x). Mathematicians call f(x) an objective function. They refer to the functions representing the constraints as constrained functions or f prime x. Another branch of the discipline of optimization is stochastic. Here the word stochastic means random. Therefore, stochastic optimization relies on a random process and probabilities to estimate the best case scenario. You can also use simulation as a prescriptive method. Queueing theory is one of…

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