Introduction to Statistical Data Analysis

In the information era, data is no protracted scarce, on the other hand, it is irresistible.
From delving into the overpowering quantity of data to precisely interpret its
complexity in order to provide insights for intense progress to organizations and
businesses, all sorts of data and information is exploited at their entirety and this is
where statistical data analysis has a significant part.

“Statistics is the specific branch of science from where the professionalists bring
distinct conclusion/interference under the same data”

Moving discussion a step further, we shall discuss;

1. What is Statistical Data Analysis?

2. Significance of data in Statistical Data Analysis
3. Statistical Data Analysis Tools
4. What are the types of Statistical Data Analysis
5. 4 steps process of Statistical Data Analysis

What is Statistical Data Analysis?

Being a branch of science, Statistics incorporates data acquisition, data

interpretation, and data validation, and statistical data analysis is the approach of
conducting various statistical operations, i.e. thorough quantitative research that
attempts to quantify data and employs some sorts of statistical analysis. Here,
quantitative data typically includes descriptive data like survey data and observational
data.

In the context of business applications, it is a very crucial technique for business

intelligence organizations that need to operate with large data volumes.

The basic goal of statistical data analysis is to identify trends, for example, in the
retailing business, this method can be approached to uncover patterns in unstructured
and semi-structured consumer data that can be used for making more powerful
decisions for enhancing customer experience and progressing sales.

Apart from that, statistical data analysis has various applications in the field of
statistical analysis of market research, business intelligence(BI), data analytics in big
data, machine learning and deep learning, and financial and economical analysis.

(Recommend blog: Top Business Intelligence Tools and Techniques in 2020)

Significance of data under statistical data analysis,

1. Data comprises variables which are univariate or multivariate, and extremely

relying on the number of variables, the experts execute several statistical
techniques.
 If the data has a singular variable then univariate statistical data analysis can be
conducted including t-test for significance, z test, f test, ANOVA test- one way,
etc.
 And if the data has many variables then different multivariate techniques can be
performed such as statistical data analysis, or discriminant statistical data
analysis, etc.

Here, the variable is a characteristic, changing from one individual trait of a

population to another trait. The image below shows the classification of data-
variables.

2. Data is of two types, continuous data and discrete data. The continuous data
cannot be counted and changes over time, e.g the intensity of light, the
temperature of a room, etc.

The discrete data can be counted and has a certain number of values, e.g. the
number of bulbs, the number of people in a group, etc.

(Related blog: Types of data in statistics)

3. Under statistical data analysis,

 the continuous data is distributed under continuous distribution function, also
known as the probability density function, and
 the discrete data is distributed under a discrete distribution function, also
termed as the probability mass function.

4. Data can either be quantitative or qualitative.

 Qualitative data are labels or names that are implemented to find a
characteristic of each element, whereas
  quantitative data are always in the form of numbers that intimate either how
much or how many.

(More to read: Steps for qualitative data analysis)

5. Under statistical data analysis, cross-sectional and time-series data are

important. For a definition, cross-sectional data are the data accumulated at the
same time or relatively the same point in time, whereas, time-series data are the
data gathered across certain time periods.

Statistical data analysis can be adopted in;

 Existing essential findings/conclusions unveiled through a dataset.

 Abstract and compile information.
 Compute measures of cohesiveness, relevance, or diversity in data.
 Originate forthcoming prophecies on the basis of earlier reported data.
 Test experimental forecasts.

Statistical Data Analysis Tools

Generally, under statistical data analysis, some form of statistical analysis tools are
practised that a layman can’t do without having statistical knowledge.

Various software programs are available to perform statistical data analysis, these
software include Statistical Analysis System(SAS), Statistical Package for Social
Science (SPSS), Stat soft and many more.
 These tools allow extensive data-handling capabilities and several statistical analysis
methods that could examine a small chunk to very comprehensive data statistics.

Though computers serve as an important factor in statistical data analysis that can
assist in the summarization of data, statistical data analysis concentrates on the
interpretation of the result in order to drive inferences and prophecies.

(Must check: Statistical Data analysis techniques)

What are the Types of Statistical Data Analysis?

There are two important components of a statistical study, that are:

 Population - an assemblage of all elements of interest in a study, and

 Sample - a subset of the population.

And, there are two types of widely used statistical methods under statistical data
analysis techniques;

1. Descriptive Statistics
It is a form of data analysis that is basically used to describe, show or summarize
data from a sample in a meaningful way. For example, mean, median, standard
deviation and variance.
 In other words, descriptive statistics attempts to illustrate the relationship
between variables in a sample or population and gives a summary in the form
of mean, median and mode.

2. Inferential Statistics
This method is used for making conclusions from the data sample by using the
null and alternative hypotheses that are subjected to random variation.

Also, probability distribution, correlation testing and regression analysis fall into
this category. In simple words, inferential statistics employs a random sample
of data, taken from a population, to make and explain inferences about the
whole population.

(Most related: What is p-value in statistics?)

The table below shows the factual differences between descriptive statistics and
inferential statistics;

S.No Descriptive Statistics Inferential Statistics

Make inferences from the sample

Related with specifying the target
1 and make them generalize also
population.
according to the population.

Arrange, analyze and reflect the data in a Correlate, test and anticipate
2
meaningful mode. future outcomes.
 Concluding outcomes are represented in Final outcomes are the
3
the form of charts, tables and graphs. probability scores.

Attempts in making conclusions

4 Explains the earlier acknowledged data. regarding the population which is
beyond the data available.

Deployed tools-Measure of central

Deployed tools- Hypothesis
5 tendency (mean, median, mode), Spread
testing, Analysis of variance, etc.
of data (Range, standard deviation, etc.)

Difference between Descriptive Statistics and Inferential Statistics

4 Basics Steps for Statistical Data Analysis

In order to analyze any problem with the use of statistical data analysis comprises four
basic steps;

1. Defining the problem

The precise and actuarial definition of the problem is imperative for achieving
accurate data concerning it. It becomes extremely difficult to collect data without
knowing the exact definition/address of the problem.

2. Accumulating the data

 After addressing the specific problem, designing multiple ways in order to accumulate
data is an important task under statistical data analysis.

Data can be collected from the actual sources or can be obtained by observation and
experimental research studies, conducted to get new data.

 In an experimental study, the important variable is identified according to the

defined problem, then one or more elements in the study are controlled for getting
data regarding how these elements affect other variables.
 In an observational study, no trial is executed for controlling or impacting the
important variable. For example, a conducted surrey is the examples or a common
type of observational study.

3. Analyzing the data

Under statistical data analysis, the analyzing methods are divided into two categories;

 Exploratory methods, this method is deployed for determining what the data is
revealing by using simple arithmetic and easy-drawing graphs/description in order to
summarize data.
 Confirmatory methods, this method adopts concept and ideas from probability
theory for trying to answer particular problems.

Probability is extremely imperative in decision-making as it gives a procedure for

estimating, representing, and explaining the possibilities associated with forthcoming
events.
4. Reporting the outcomes

By inferences, an estimate or test that claims to be the characteristics of a population

can be derived from a sample, these results could be reported in the form of a table, a
graph or a set of percentages.

Since only a small portion of data has been investigated, therefore the reported result
can depict some uncertainties by implementing probability statements and intervals of
values.

With the help of statistical data analysis, experts could forecast and anticipate future
aspects from data. By understanding the information available and utilizing it
effectively may lead to adequate decision-making. (Source)

Conclusion

The statistical data analysis furnishes sense to the meaningless numbers and thereby
giving life to lifeless data. Therefore, it is imperative for a researcher to have adequate
knowledge about statistics and statistical methods to perform any research study.