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Data Analytics Exam Notes

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Data Analytics Exam Notes

Uploaded by

bhargavyash259
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© © All Rights Reserved
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Download as PDF, TXT or read online on Scribd
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Data Analytics - Exam Notes

1. Introduction to Data Analytics

- Definition: Data analytics involves the collection, organization, and analysis of raw data to answer

questions, uncover insights, and support decision-making.

- Role in Business: It allows businesses to:

* Create strategies based on evidence.

* Understand customer behaviors and preferences for targeted marketing.

* Improve operational efficiency and productivity.

* Maximize profit by making informed decisions.

- Key Components:

* Data analytics is a multidisciplinary field that uses techniques from mathematics, statistics, and

computer science.

* The goal is to analyze data to draw meaningful conclusions, make predictions, and inform

business decisions.

2. Types of Data Analytics

1. Descriptive Analytics:

* Purpose: To understand what has happened in the past by analyzing historical data.

* Examples: Management reports, sales data, operational data, financial summaries.

* Tools: Data queries, dashboards, and descriptive statistics.

2. Diagnostic Analytics:

* Purpose: To explain why something happened, often using historical data to identify patterns and

correlations.

* Techniques: Data discovery, data mining, and correlation analysis.

* Example: A business might use diagnostic analytics to understand why sales dropped in a
particular quarter by finding patterns in customer data.

3. Predictive Analytics:

* Purpose: To predict future trends based on historical data using statistical techniques like

regression, time series analysis, and machine learning.

* Techniques: Linear regression, time series forecasting, data mining, predictive modeling.

* Example: Predicting customer churn based on past behavior patterns.

* Use Case: Businesses use predictive analytics to forecast sales, customer behaviors, or risk

factors.

4. Prescriptive Analytics:

* Purpose: To recommend actions based on predictions. It goes beyond predicting future

outcomes by providing decision options and showing their potential impact.

* Techniques: Mathematical models, machine learning, and optimization algorithms.

* Example: In healthcare, prescriptive analytics can suggest treatment plans by analyzing patient

data and predicting health outcomes.

* Benefits: Helps decision-makers take advantage of opportunities or mitigate risks.

3. Steps in Data Analysis

1. Defining Data Requirements:

* First step is to identify how data will be categorized. Categories can include demographic factors

like age, income, or gender.

2. Data Collection:

* Data is gathered from various sources such as computers, sensors, or online platforms.

3. Data Organization:
* Once collected, data is organized into structured formats, such as spreadsheets or databases, to

make it easier to analyze.

4. Data Cleaning:

* This involves removing errors, duplicates, and incomplete data to ensure the dataset is accurate

and reliable.

4. Data Analytics Tools

- Artificial Intelligence: AI can be used to automate decision-making processes.

- NoSQL Databases: Useful for handling large volumes of data that don't fit neatly into structured

formats.

- R Programming: Popular in data science for building statistical models and running complex

analyses.

- Data Lakes: Store vast amounts of raw, unstructured, or semi-structured data for future analysis.

- Microsoft Excel: A common tool for data aggregation and dashboard creation.

5. Sources and Nature of Data

1. Primary Data:

* Collected firsthand through techniques like surveys, interviews.

2. Secondary Data:

* Data collected previously for a different purpose and reused.

6. Classification of Data

1. Structured Data: Highly organized, easily searchable.

2. Semi-Structured Data: Contains tags to separate elements but not fully structured.

3. Unstructured Data: Data that isn't easily searchable (e.g., videos, images).
7. Need for Data Analytics in Business

- Helps reduce costs and improve efficiency by identifying better strategies.

- Enables better data-driven decisions.

8. Techniques and Tools in Predictive Analytics

- Linear Regression, Time Series Analysis, Data Mining.

9. Prescriptive Analytics

- Not only predicts future outcomes but also suggests actions to optimize results.

10. Example Applications

- Descriptive Analytics: Used in generating reports like customer purchase history.

- Predictive Analytics: Used in marketing to predict customer responses.

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