CHAPTER 7

DATA ANALYSIS AND

INTERPRETATION

Objectives:

After completing this chapter, you will be able to:

• To complete this study properly, it is necessary to

analyze the data collected in order to test the hypothesis
and answer the research questions.

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 Analysis and Interpretation

Data analysis
Data analysis a process of inspecting, cleansing, transforming and modeling data with the
goal of discovering useful information, informing conclusions and supporting decision-making.

Data mining
Data mining is a particular data analysis technique that focuses on statistical
modeling and knowledge discovery for predictive rather than purely descriptive purposes,
while business intelligence covers data analysis that relies heavily on aggregation,
focusing mainly on business information.

The process of Data analysis

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Data requirements
• The data are necessary as inputs to the analysis, which is specified based upon
the requirements of those directing the analysis or customers (who will use the
finished product of the analysis).

Data collection
• Data are collected from a variety of sources.

Data processing
• Data initially obtained must be processed or organised for analysis. For instance,
these may involve placing data into rows and columns in a table format (i.e.,
structured data) for further analysis, such as within a spreadsheet or statistical
software.

Data cleaning
• Once processed and organized, the data may be incomplete, contain duplicates,
or contain errors. The need for data cleaning will arise from problems in the way
that data are entered and stored. Data cleaning is the process of preventing and
correcting these errors. Common tasks include record matching, identifying
inaccuracy of data, overall quality of existing data, deduplication, and column
segmentation.

Exploratory data analysis

• Once the data are cleaned, it can be analyzed. Analysts may apply a variety of
techniques referred to as exploratory data analysis to begin understanding the
messages contained in the data.

Modeling and algorithms

• Mathematical formulas or models called algorithms may be applied to the data to
identify relationships among the variables, such as correlation or causation.

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Data product
• A data product is a computer application that takes data inputs and generates
outputs, feeding them back into the environment. It may be based on a model or
algorithm. An example is an application that analyzes data about customer
purchasing history and recommends other purchases the customer might enjoy.

Communication
• Once the data are analyzed, it may be reported in many formats to the users of the
analysis to support their requirements. The users may have feedback, which
results in additional analysis. As such, much of the analytical cycle is iterative.

Analytical activities of data users

Confusing fact and opinion

• Effective analysis requires obtaining relevant facts to answer questions, support a
conclusion or formal opinion, or test hypotheses.

Cognitive biases
• There are a variety of cognitive biases that can adversely affect analysis. For
example, confirmation bias is the tendency to search for or interpret information in

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 a way that confirms one's preconceptions. In addition, individuals may discredit
information that does not support their views

Innumeracy
• Effective analysts are generally adept with a variety of numerical techniques.
However, audiences may not have such literacy with numbers or numeracy; they
are said to be innumerate. Persons communicating the data may also be
attempting to mislead or misinform, deliberately using bad numerical techniques.

Initial data analysis

• The most important distinction between the initial data analysis phase and the main
analysis phase, is that during initial data analysis one refrains from any analysis
that is aimed at answering the original research question. The initial data analysis
phase is guided by the following four questions.

Data Interpretation

Data interpretation is the process of reviewing data through some predefined

processes which will help assign some meaning to the data and arrive at a relevant
conclusion. It involves taking the result of data analysis, making inferences on the
relations studied, and using them to conclude.

Before any serious data analysis can begin, the scale of measurement must be
decided for the data as this will have a long-term impact on data interpretation ROI.

The varying scales include:

1. Nominal Scale: non-numeric categories that cannot be ranked or compared

quantitatively. Variables are exclusive and exhaustive.

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 2. Ordinal Scale: exclusive categories that are exclusive and exhaustive but with
a logical order. Quality ratings and agreement ratings are examples of ordinal
scales (i.e., good, very good, fair, etc., OR agree, strongly agree, disagree, etc.).

3. Interval: a measurement scale where data is grouped into categories with

orderly and equal distances between the categories. There is always an
arbitrary zero point.
4. Ratio: contains features of all three.

How to Interpret Data?

The interpretation of data is designed to help people make sense of numerical data
that has been collected, analyzed and presented. Having a baseline method (or methods)
for interpreting data will provide your analyst teams a structure and consistent foundation.
Indeed, if several departments have different approaches to interpret the same data, while
sharing the same goals, some mismatched objectives can result. Disparate methods will
lead to duplicated efforts, inconsistent solutions, wasted energy and inevitably – time and
money. In this part, we will look at the two main methods of interpretation of data: with a
qualitative and a quantitative analysis.

Qualitative Data Interpretation

Qualitative data analysis can be summed up in one word – categorical. With
qualitative analysis, data is not described through numerical values or patterns, but
through the use of descriptive context (i.e., text). Typically, narrative data is gathered by
employing a wide variety of person-to-person techniques.
These techniques include:

• Observations: detailing behavioral patterns that occur within an observation

group. These patterns could be the amount of time spent in an activity, the type of
activity and the method of communication employed.

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 • Documents: much like how patterns of behavior can be observed, different types
of documentation resources can be coded and divided based on the type of
material they contain.

• Interviews: one of the best collection methods for narrative data. Enquiry
responses can be grouped by theme, topic or category. The interview approach
allows for highly-focused data segmentation.

Quantitative Data Interpretation

If quantitative data interpretation could be summed up in one word (and it really
can’t) that word would be “numerical.” There are few certainties when it comes to data
analysis, but you can be sure that if the research you are engaging in has no numbers
involved, it is not quantitative research. Quantitative analysis refers to a set of processes
by which numerical data is analyzed. More often than not, it involves the use of statistical
modeling such as standard deviation, mean and median.

Let’s quickly review the most common statistical terms:

• Mean: a mean represents a numerical average for a set of responses. When

dealing with a data set (or multiple data sets), a mean will represent a central value
of a specific set of numbers. It is the sum of the values divided by the number of
values within the data set. Other terms that can be used to describe the concept
are arithmetic mean, average and mathematical expectation.

• Standard deviation: this is another statistical term commonly appearing in

quantitative analysis. Standard deviation reveals the distribution of the responses
around the mean. It describes the degree of consistency within the responses;
together with the mean, it provides insight into data sets.

• Frequency distribution: this is a measurement gauging the rate of a response

appearance within a data set. When using a survey, for example, frequency

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 distribution has the capability of determining the number of times a specific ordinal
scale response appears (i.e., agree, strongly agree, disagree, etc.). Frequency
distribution is extremely keen in determining the degree of consensus among data
points.

Typically, quantitative data is measured by visually presenting correlation tests

between two or more variables of significance. Different processes can be used together
or separately, and comparisons can be made to ultimately arrive at a conclusion.

Other signature interpretation processes of quantitative data include:

• Regression analysis
• Cohort analysis
• Predictive and prescriptive analysis

Data Interpretation Methods Summary List and Tips

Data analysis and interpretation are critical to develop sound conclusions and
make better informed decisions. As we have seen all along this article, there is an art and
science to the interpretation of data.

Hereafter is a list-summary of how to interpret data and some tips:

• Collect your data and make it as clean as possible.

• Choose the type of analysis to perform: qualitative or quantitative, and apply the
methods respectively to each.
• Qualitative analysis: observe, document and interview notice, collect and think
about things.
• Quantitative analysis: you lead a research with a lot of numerical data to be
analyzed through various statistical methods – mean, standard deviation or
frequency distribution for instance.

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• Take a step back: and think about your data from various perspectives, and what
it means for various participants or actors of the project.
• Reflect on your own thinking and reasoning: and be aware of the many pitfalls
data analysis and interpretation carries. Correlation versus causation, subjective
bias, false information and inaccurate data, etc.

Video links:

Data Analysis and Interpretation

• https://www.youtube.com/watch?v=dSLWZFL
dAWM
Interpreting Data
• https://www.youtube.com/watch?v=uUGRBEjr
QWc
Analysing, Interpreting and Presenting Data
• https://www.youtube.com/watch?v=e1hqXq0J
yK0

Reference:

• https://www.datapine.com/blog/data-interpretation-
methods-benefits-problems/
• Xia, B. S., & Gong, P. (2015). Review of business
intelligence through data
analysis. Benchmarking, 21(2), 300-311.
doi:10.1108/BIJ-08-2012-0050
• Judd, Charles and, McCleland, Gary (1989). Data
Analysis. Harcourt Brace Jovanovich Schutt,
Rachel; O'Neil, Cathy (2013). Doing Data
Science. O'Reilly Media

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