Scribd
Upload
43 views3 pages

Data Analysis Methods

Data analysis methods can be used both in scientific contexts to explore data as well as in business contexts to make data-driven decisions. There are various quantitative and qualitative methods for analyzing data, ranging from descriptive analysis, which describes what happened, to exploratory analysis, which explores relationships in the data. Key quantitative methods include cluster analysis, which groups similar data elements; cohort analysis, which examines behavior of user segments over time; and regression analysis, which understands how changing independent variables affect dependent variables.

Uploaded by

eyobtesfaye567
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
43 views3 pages

Data Analysis Methods

Data analysis methods can be used both in scientific contexts to explore data as well as in business contexts to make data-driven decisions. There are various quantitative and qualitative methods for analyzing data, ranging from descriptive analysis, which describes what happened, to exploratory analysis, which explores relationships in the data. Key quantitative methods include cluster analysis, which groups similar data elements; cohort analysis, which examines behavior of user segments over time; and regression analysis, which understands how changing independent variables affect dependent variables.

Uploaded by

eyobtesfaye567
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 3

Data Analysis Methods

In science, data analysis uses a more complex approach with


advanced techniques to explore and experiment with data. On the
other hand, in a business context, data is used to make data-driven
decisions that will enable the company to improve its overall
performance. In this post, we will cover the analysis of data from an
organizational point of view while still going through the scientific and
statistical foundations that are fundamental to understanding the
basics of data analysis.

Data analysis is the process of collecting, modeling, and analyzing


data using various statistical and logical methods and techniques.
Businesses rely on analytics processes and tools to extract insights
that support strategic and operational decision-making.

All these various methods are largely based on two core


areas: quantitative and qualitative research.

Starting with the category of descriptive up to prescriptive analysis,


the complexity and effort of data evaluation increases, but also the
added value for the company.

A) Descriptive analysis – What happened.

The descriptive analysis method is the starting point for any analytic
reflection, and it aims to answer the question of what happened? It
does this by ordering, manipulating, and interpreting raw data from
various sources to turn it into valuable insights for your organization.

Performing descriptive analysis is essential, as it enables us to


present our insights in a meaningful way. Although it is relevant to
mention that this analysis on its own will not allow you to predict
future outcomes or tell you the answer to questions like why
something happened, it will leave your data organized and ready to
conduct further investigations.

b) Exploratory analysis – How to explore data relationships.


As its name suggests, the main aim of the exploratory analysis is to
explore. Prior to it, there is still no notion of the relationship between
the data and the variables. Once the data is investigated, exploratory
analysis helps you to find connections and generate hypotheses and
solutions for specific problems. A typical area of application for it is
data mining.

Quantitative Methods

To put it simply, quantitative analysis refers to all methods that use


numerical data or data that can be turned into numbers (e.g. category
variables like gender, age, etc.) to extract valuable insights. It is used
to extract valuable conclusions about relationships, differences, and
test hypotheses. Below we discuss some of the key quantitative
methods.

Cluster analysis

The action of grouping a set of data elements in a way that said


elements are more similar (in a particular sense) to each other than to
those in other groups – hence the term ‘cluster.’ Since there is no
target variable when clustering, the method is often used to find
hidden patterns in the data. The approach is also used to provide
additional context to a trend or dataset.

Cohort analysis
This type of data analysis approach uses historical data to examine
and compare a determined segment of users' behavior, which can then
be grouped with others with similar characteristics. By using this
methodology, it's possible to gain a wealth of insight into consumer
needs or a firm understanding of a broader target group.

Regression analysis
Regression uses historical data to understand how a dependent
variable's value is affected when one (linear regression) or more
independent variables (multiple regression) change or stay the same.
By understanding each variable's relationship and how it developed in
the past, you can anticipate possible outcomes and make better
decisions in the future.

Bernardita Calzon in Data Analysis, Mar 3rd 2023

https://www.datapine.com/blog/data-analysis-methods-and-techniques/

You might also like