Member-only story

13 Statistical Analysis Methods for

Data Analysts & Data Scientists
btd · Follow
14 min read · Nov 9, 2023

21
 Photo by alksndra on Unsplash

Statistical analysis techniques encompass a wide range of methods used to

analyze data, make inferences, and draw conclusions about populations or
datasets. Here is a list of various statistical analysis techniques:

1. Descriptive Statistics:
These techniques provide a summary of data, including measures of central
tendency (mean, median, mode), variability (range, variance, standard
deviation), and the shape of data distributions.

Measures of central tendency (mean, median, mode)

Measures of variability (range, variance, standard deviation)

Measures of distribution (skewness, kurtosis)

Frequency distributions and histograms

2. Inferential Statistics:
These methods are used to draw conclusions about populations or datasets
based on a sample. They include hypothesis testing, confidence intervals,
regression analysis, correlation analysis, and more.

a. Hypothesis Testing:
 Student’s t-test: A statistical test used to determine if there is a significant
difference between the means of two groups. It’s commonly employed
when working with small sample sizes.

Analysis of Variance (ANOVA): A statistical method used to assess whether

there are any statistically significant differences between the means of
three or more independent groups. It helps identify which group(s) differ
from the others.

Chi-squared test: A statistical test used to determine if there is a significant

association between two categorical variables. It is often applied to data
arranged in a contingency table.

Z-test: A statistical test that assesses whether the mean of a sample differs
significantly from a known population mean. It is particularly useful
when dealing with large sample sizes.

b. Confidence Intervals:
Confidence interval estimation: A statistical technique used to quantify the
uncertainty around an estimate by providing a range of values within
which the true population parameter is likely to fall with a certain level of
confidence. The confidence interval is computed based on the sample
data and reflects the precision of the estimate. For example, a 95%
confidence interval indicates that if the same sampling process were
repeated many times, the true parameter would fall within the interval in
95% of those cases.

c. Regression Analysis:
Linear regression: A statistical method used to model the relationship
between a dependent variable and one or more independent variables. It
assumes a linear relationship and aims to find the best-fitting line
 (regression line) that minimizes the sum of squared differences between
the observed and predicted values.

Multiple regression: An extension of linear regression that involves

modeling the relationship between a dependent variable and two or more
independent variables. It allows for the analysis of how multiple factors
influence the dependent variable simultaneously.

Logistic regression: A statistical method used for predicting the probability

of a binary outcome. It models the relationship between a dependent
binary variable and one or more independent variables using the logistic
function. It is commonly used for classification problems.

Poisson regression: A type of regression used when the dependent variable

represents counts and follows a Poisson distribution. It models the
relationship between the counts and one or more independent variables,
making it suitable for analyzing data where the outcome is a count
variable (e.g., number of events) and the assumptions of normality are
not met.

d. Correlation Analysis:
Pearson correlation coefficient: A measure of the linear relationship
between two continuous variables. It ranges from -1 to +1, where +1
indicates a perfect positive linear relationship, -1 indicates a perfect
negative linear relationship, and 0 indicates no linear relationship. It is
sensitive to outliers and assumes that the variables are approximately
normally distributed.

Spearman rank correlation: A non-parametric measure of the strength and

direction of the monotonic relationship between two variables. It
assesses how well the relationship between the variables can be
described using a monotonic function (either increasing or decreasing),
 making it more robust to outliers than Pearson correlation. It works by
assigning ranks to the data points and then computing the correlation
based on these ranks rather than the raw data values.

e. Time Series Analysis:

AutoRegressive Integrated Moving Average (ARIMA): A popular time series
forecasting model that combines autoregression (AR), differencing (I for
integrated), and moving averages (MA). ARIMA models are effective for
capturing trends and seasonality in time series data, making them
valuable for predicting future points in a time series.

Seasonal decomposition of time series (STL): A method for decomposing a

time series into its three main components: Seasonal, Trend, and
Residual. STL decomposition helps analysts better understand and model
time series data by separating out these components, making it easier to
analyze and forecast each aspect independently.

Exponential smoothing: A time series forecasting method that assigns

exponentially decreasing weights to past observations. This method is
particularly useful for data with trends and seasonality. It includes
different variants like Simple Exponential Smoothing (SES), Double
Exponential Smoothing (Holt’s method), and Triple Exponential
Smoothing (Holt-Winters method), each accommodating different time
series patterns.

f. Non-parametric Tests:
Mann-Whitney U test: A non-parametric test used to determine whether
there is a significant difference between the distributions of two
independent groups. It is an alternative to the independent samples t-test
and does not assume normal distribution.
 Wilcoxon signed-rank test: A non-parametric test used to assess whether
there is a significant difference between paired observations. It is often
applied when the data is not normally distributed or when the
assumption of equal variances is violated.

Kruskal-Wallis test: A non-parametric test used to determine whether

there are statistically significant differences between three or more
independent groups. It extends the Mann-Whitney U test to multiple
groups and is applicable when the assumptions for parametric ANOVA
are not met.

Friedman test: A non-parametric test used to detect differences in

treatments across multiple related groups. It is an extension of the
Wilcoxon signed-rank test for more than two related samples. The
Friedman test is often used when the data is not normally distributed and
violates the assumptions of a parametric repeated-measures ANOVA.

g. Survival Analysis:
Kaplan-Meier estimator: A non-parametric statistical method used to
estimate the survival function from time-to-event data, such as the time
until a patient experiences an event (e.g., death). It is commonly used in
medical research and other fields where the time until an event is of
interest. The Kaplan-Meier estimator can handle censored data, where
the event of interest has not occurred for some subjects by the end of the
study.

Cox proportional hazards model: A statistical model used for survival

analysis that examines the association between the time until an event
occurs (survival time) and one or more predictor variables. The Cox
proportional hazards model assumes that the hazard (risk of the event)
for any individual is a constant multiple of the hazard for any other
individual, and this proportionality remains constant over time. It’s a
 semi-parametric model that does not make strong assumptions about the
shape of the survival function.

Open in app

3. Multivariate Analysis:
Search Write
This category covers techniques for analyzing data with multiple variables,
such as factor analysis, cluster analysis, PCA, canonical correlation analysis,
and discriminant analysis.

a. Factor Analysis:
Exploratory Factor Analysis (EFA): A statistical technique used to identify
underlying relationships (factors) among a set of observed variables
without pre-specifying the nature of those relationships. EFA aims to
discover the structure of the data by grouping variables that tend to co-
occur. It is often used in the initial stages of research to explore and
generate hypotheses about the underlying structure of the data.

Confirmatory Factor Analysis (CFA): A statistical technique used to test a

specific hypothesis about the structure of relationships among observed
variables. Unlike EFA, CFA involves specifying a priori a model that
hypothesizes how the observed variables are related to underlying latent
factors. The goal is to confirm or reject the proposed factor structure
based on the observed data. CFA is commonly used for validating existing
theories or models in social sciences, psychology, and other fields.

b. Cluster Analysis:
K-Means clustering: A partitioning method for clustering data points into
distinct groups or clusters. The algorithm assigns each data point to the
cluster whose mean (centroid) is closest, minimizing the sum of squared
distances within clusters. K-Means is widely used for its simplicity and
efficiency in creating clusters based on similarity.
 Hierarchical clustering: A clustering method that creates a hierarchy of
clusters. It starts with each data point as a separate cluster and iteratively
merges or splits clusters based on their similarity. Hierarchical clustering
results in a tree-like structure called a dendrogram, where the leaves
represent individual data points and the branches represent the merging
of clusters at different similarity levels.

DBSCAN (Density-Based Spatial Clustering of Applications with Noise): A

density-based clustering algorithm that groups together data points that
are close to each other and have a sufficient number of neighbors,
forming dense regions. It is particularly effective at identifying clusters
with irregular shapes and can identify noise points as well. DBSCAN is
less sensitive to the initial configuration of points compared to K-Means
and does not require specifying the number of clusters beforehand.

c. Principal Component Analysis (PCA):

A dimensionality reduction technique used to transform a set of
correlated variables into a new set of uncorrelated variables called
principal components. PCA identifies the directions of maximum
variance in the data and projects the data onto these directions. It is
commonly employed for feature extraction, visualization, and reducing
the complexity of high-dimensional datasets.

d. Canonical Correlation Analysis (CCA):

A multivariate statistical technique that explores the relationships
between two sets of variables. CCA identifies linear combinations of
variables (canonical variates) in each set such that the correlation
between the sets is maximized. It is often used to analyze the
relationships between pairs of variables or datasets and is particularly
useful when dealing with multiple correlated outcome variables. CCA
finds patterns of association rather than summarizing the variables
 themselves, making it a valuable tool in fields such as psychology,
economics, and biology.

e. Discriminant Analysis:
Linear Discriminant Analysis (LDA): A classification and dimensionality
reduction technique that aims to find the linear combinations of features
that best separate two or more classes. LDA seeks to maximize the
distance between class means while minimizing the spread (variance)
within each class. It is commonly used for supervised classification
problems when the classes are known in advance.

Quadratic Discriminant Analysis (QDA): Similar to Linear Discriminant

Analysis, QDA is a classification method that assumes different
covariance matrices for each class, as opposed to LDA, which assumes a
common covariance matrix for all classes. QDA is more flexible in
handling cases where the classes have different variances. Like LDA, it is
used for supervised classification problems when the classes are known.

4. Experimental Design:
Methods for designing and analyzing controlled experiments, including
ANOVA, randomized controlled trials, factorial experiments, and more.

Analysis of Variance (ANOVA): A statistical method used to analyze the

differences among group means in a sample. It assesses whether there
are any statistically significant differences between the means of three or
more independent groups. ANOVA is often used in experimental research
to compare the effect of different treatments or conditions.

Randomized Controlled Trials (RCTs): Experimental studies in which

participants are randomly assigned to different groups, including a
treatment group and a control group. RCTs are widely used in medical
 and scientific research to evaluate the effectiveness of interventions or
treatments while minimizing bias and confounding variables.

Factorial Experiments: Experimental designs that involve studying the

effects of two or more independent variables (factors) simultaneously.
Factorial experiments allow researchers to investigate the main effects of
each factor as well as potential interactions between factors, providing a
more comprehensive understanding of their combined influence on the
dependent variable.

Block Design: A design in experimental research where participants are

grouped into blocks based on certain characteristics that are expected to
influence the outcome. Within each block, random assignment to
different conditions or treatments is performed. Block designs help
control for potential sources of variability and increase the precision of
the experiment.

Crossover Design: A type of experimental design commonly used in

clinical trials where each participant receives different treatments at
different times, with a washout period in between. Crossover designs
help control for individual differences, making each participant serve as
their own control. They are often employed when carryover effects are a
concern.

5. Bayesian Statistics:
Bayesian techniques involve updating beliefs based on prior knowledge and
new evidence. They include Bayesian inference, Bayesian networks, and
Markov Chain Monte Carlo (MCMC) methods.

Bayesian Inference: A statistical method that involves updating probability

estimates based on prior knowledge and new evidence. In Bayesian
 inference, probability is treated as a measure of belief or certainty, and
Bayes’ theorem is used to update probabilities as new data becomes
available. It provides a framework for incorporating prior knowledge,
making predictions, and updating beliefs in a principled manner.

Bayesian Networks: Graphical models that represent the probabilistic

relationships among a set of variables using a directed acyclic graph.
Nodes in the graph represent random variables, and edges represent
probabilistic dependencies. Bayesian networks are used for modeling
and reasoning under uncertainty, making them valuable for tasks such as
risk assessment, decision support, and predictive modeling.

Markov Chain Monte Carlo (MCMC): A computational technique for

sampling from complex probability distributions, particularly in
Bayesian statistics. MCMC methods, such as the Metropolis-Hastings
algorithm and the Gibbs sampler, generate a sequence of samples that
converge to the desired distribution. MCMC is widely used for Bayesian
inference when analytical solutions are difficult to obtain, and it is
employed in various fields, including statistics, machine learning, and
physics.

6. Spatial Analysis:
These techniques are used to analyze data with geographic or spatial
attributes. Methods include spatial autocorrelation analysis, geostatistics,
and kernel density estimation.

Spatial Autocorrelation Analysis: A statistical technique used to assess

whether the values of a variable in a geographic space exhibit spatial
dependence. It evaluates whether similar or dissimilar values tend to
occur near each other. Positive spatial autocorrelation indicates
 clustering of similar values, while negative spatial autocorrelation
suggests a dispersion pattern. Spatial autocorrelation analysis is common
in geography, ecology, and other fields studying spatial patterns.

Geostatistics: A set of statistical methods used for analyzing spatial data

that incorporates the spatial structure and variation of the data.
Geostatistical techniques, including kriging, variogram analysis, and
spatial interpolation, are widely used in fields like environmental
science, geology, and agriculture to model and predict spatial patterns
and distributions.

Kernel Density Estimation: A non-parametric method for estimating the

probability density function of a continuous random variable in a spatial
context. Kernel density estimation creates a smooth, continuous surface
that represents the spatial distribution of events or observations. It is
commonly used in spatial statistics to visualize and analyze the intensity
or concentration of events across a geographic area, helping to identify
hotspots or clusters.

7. Machine Learning Techniques:

A wide range of algorithms used for tasks such as classification, regression,
clustering, and dimensionality reduction.

Decision Trees: A supervised machine learning algorithm that makes

decisions by recursively splitting the dataset based on features. It creates
a tree structure where each internal node represents a decision based on
a feature, and each leaf node represents the predicted outcome.

Random Forest: An ensemble learning method that constructs multiple

decision trees during training and outputs the mode (classification) or
mean prediction (regression) of the individual trees. It improves
accuracy and reduces overfitting compared to a single decision tree.

Support Vector Machines (SVM): A supervised learning algorithm used for

classification and regression tasks. SVM aims to find a hyperplane that
best separates data points into different classes while maximizing the
margin between the classes.

Neural Networks: A class of machine learning models inspired by the

structure and functioning of the human brain. Neural networks consist
of interconnected nodes (neurons) organized into layers, including input,
hidden, and output layers. They are powerful for a wide range of tasks,
including image and speech recognition, and can be used for both
regression and classification.

K-Nearest Neighbors (K-NN): A simple, instance-based learning algorithm

used for classification and regression. It classifies a data point based on
the majority class of its k nearest neighbors in the feature space.

Clustering Algorithms (e.g., K-Means): Unsupervised learning methods that

group similar data points together. K-Means is a popular clustering
algorithm that partitions data into k clusters based on similarity.

Dimensionality Reduction (e.g., PCA): Techniques to reduce the number of

features in a dataset while preserving its essential information. PCA, for
example, identifies and retains the most important features by
transforming the data into a new set of uncorrelated variables called
principal components.

Ensemble Methods (e.g., Bagging and Boosting): Techniques that combine

multiple models to improve overall performance. Bagging (Bootstrap
Aggregating) creates an ensemble by training models on bootstrapped
subsets of the data. Boosting combines weak models sequentially, giving
more weight to misclassified instances.
 Natural Language Processing (NLP) techniques for text analysis: A field of
study focused on the interaction between computers and human
language. NLP techniques include tasks like sentiment analysis, named
entity recognition, and language translation, often using machine
learning algorithms.

Deep Learning (e.g., Convolutional Neural Networks, Recurrent Neural

Networks): A subset of machine learning that involves neural networks
with many layers (deep neural networks). Convolutional Neural Networks
(CNNs) are effective for image-related tasks, while Recurrent Neural
Networks (RNNs) are well-suited for sequential data, such as natural
language processing tasks. Deep learning has achieved significant
success in various domains due to its ability to automatically learn
hierarchical representations.

8. Time-Frequency Analysis:
Methods for analyzing signals and time series data in both the time and
frequency domains.

Fast Fourier Transform (FFT): A computational algorithm that efficiently

computes the Discrete Fourier Transform (DFT) and its inverse. FFT is
widely used for analyzing and processing signals in various applications,
such as signal processing, audio analysis, image processing, and
telecommunications. It transforms a signal from the time domain to the
frequency domain, revealing its frequency components.

Wavelet Transform: A mathematical technique for transforming signals

into a different representation, emphasizing different aspects of the
signal at different scales. The wavelet transform is particularly useful for
analyzing signals with non-stationary characteristics, where different
 frequencies dominate at different points in time. It has applications in
signal and image processing, compression, and denoising.

Short-Time Fourier Transform (STFT): A time-frequency analysis technique

that provides a compromise between the time and frequency resolutions
of a signal. STFT divides a signal into short overlapping segments and
applies the Fourier transform to each segment, producing a time-varying
representation of the signal’s frequency content. STFT is commonly used
in audio processing and speech analysis, where the signal characteristics
change over time.

9. Meta-Analysis:
Techniques used to combine and analyze results from multiple studies or
experiments.

10. Simulation and Monte Carlo Analysis:

These techniques use simulations to model complex systems and analyze
probabilistic outcomes.

11. Quality Control and Process Control:

Statistical methods used to monitor and improve the quality of products or
processes. They include control charts and Six Sigma methodologies.

Control charts: Statistical tools used in quality control to monitor and

maintain the stability of a process over time. Control charts display
process variation over time and help identify whether observed
variations are within acceptable limits or if there are any patterns or
trends that may indicate a need for process adjustment. They are
 essential in manufacturing, healthcare, and other industries to ensure
consistent product or service quality.

Six Sigma methodologies: A set of techniques and tools for process

improvement, quality management, and reduction of defects or errors in
a manufacturing or business process. Six Sigma aims to achieve nearly
defect-free processes by systematically identifying and removing the
causes of variation and waste. It follows a structured problem-solving
approach, often defined by the DMAIC (Define, Measure, Analyze,
Improve, Control) cycle, and emphasizes data-driven decision-making.
Organizations adopting Six Sigma strive to achieve a level of performance
where only 3.4 defects per million opportunities occur.

12. Econometric Analysis:

Techniques for modeling and analyzing economic data, often used in
economic research and policy analysis.

13. Spatial Analysis and Geographic Information Systems (GIS):

Analyzing geographic and spatial data to make informed decisions, manage
resources, and understand spatial relationships.

These are just a selection of statistical analysis techniques, and the choice of
method depends on the nature of the data, research questions, and specific
objectives of a study or analysis. Researchers and analysts often use a
combination of these techniques to gain a comprehensive understanding of
data and make meaningful conclusions.

Data Analysis Statistical Analysis Data Science Data Scientist Data Analyst
Written by btd Follow

536 Followers

Learning & making lists

More from btd

 btd btd

Explainable AI (XAI) for Anomaly SQL Query Flow: Understanding

Detection: Understanding Outlier… Query Execution Order
Explainable AI (XAI) for anomaly detection Understanding the order of execution of SQL
focuses on enhancing the interpretability of… queries is crucial for writing efficient and…

· 4 min read · Nov 23, 2023 · 3 min read · Nov 12, 2023

23 12

btd btd

Image Preprocessing for Computer Step-by-Step Guide to Fine-tuning

Vision Tasks in Python Using… Pre-trained Models for Computer…
Image preprocessing is a crucial step in Fine-tuning pre-trained models for specific
preparing images for machine learning task… computer vision tasks is a common and…

· 4 min read · Nov 22, 2023 · 3 min read · Nov 21, 2023

23 1
 See all from btd

Recommended from Medium

Andres Vourakis Anmol Tomar

The Sad Reality: Not Enough Actual Pandas Crash Course: Top 30
Data Science Functions for ANY Data Analysis
Last letter to my boss after I quit Become a Pro in using Pandas for Data
Science

· 3 min read · Jan 18, 2024 · 8 min read · Feb 6, 2024

310 12 369 2

Lists

Predictive Modeling w/ Practical Guides to Machine

Python Learning
20 stories · 911 saves 10 stories · 1065 saves
 ChatGPT prompts Coding & Development
39 stories · 1121 saves 11 stories · 447 saves

Mirko Pet… in Mirko Peters — Data & Analytics … Ryan O'Sullivan

Understanding P-Values: A Guide Using Causal Graphs to answer

to Statistical Significance causal questions
In the field of statistics, p-values play a crucial This article gives a practical introduction to
role in determining the significance of… the potential of causal graphs.

· 13 min read · Nov 5, 2023 9 min read · Jan 31, 2024

7 248 2

John Loewen, PhD in Data Storytelling Corner RStudioDataLab

What Makes a Data Visual Solve Classification Problems with

Awesome? Eight Examples And M… LDA: An R-Powered Guide
Eight wonderfully diverse data visualizations Learn how LDA tackles multi-class problems.
explained Optimize your models and explore how LDA…

· 6 min read · Jan 31, 2024 16 min read · 3 days ago

 226 3

See more recommendations