Which of the following is an advantage of prescriptive analysis?

The advantage of prescriptive analysis primarily lies in its ability to identify optimum investment decisions by considering multiple variables. This type of analysis goes beyond merely describing historical data or predicting future outcomes; it actively recommends actions based on the analysis of various factors.

By leveraging advanced analytical techniques, prescriptive analysis assesses the potential outcomes of different decisions and provides recommendations that help decision-makers understand the best course of action to achieve desired results. This capability is especially valuable in financial management, where decisions often involve trade-offs among competing objectives such as risk, return, and resource allocation.

This multifactorial approach enables organizations to optimize their investment strategies, maximizing returns while effectively managing risks in a dynamic environment. Thus, option B highlights the core strength of prescriptive analysis in enhancing decision-making in financial contexts.