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C1 Module 1 Lesson 1

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8 views15 pages

C1 Module 1 Lesson 1

Uploaded by

windrive001
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© 2021 CFA Institute. All rights reserved.

Data Types
Neil Govier, CFA
Regional Director, APAC
Professional Learning
Lesson Overview
79 81 77 58 71 69 71 81 73 46
80 81 62 50 68 63 77 82 61 66
65 50 66 48 72 49 50 52 78 83
62 78 51 70 68 80 79 83 79 61
56 56 64 64 81 49 57 68 62 66
47 76 68 46 83 65 76 55 79 63
81 66 45 64 67 83 77 61 55 50
80 49 65 65 69 69 59 49 55 77
79 51 76 68 71 78 50 51 72 69
57 48 45 51 56 74 70 51 45 83
Data for illustration only.
Lesson Overview
45 49 51 57 63 66 69 74 78 81
45 49 51 58 64 66 69 76 79 81
45 50 52 59 64 67 70 76 79 81
46 50 55 61 64 68 70 76 79 81
46 50 55 61 65 68 71 77 79 82
47 50 55 61 65 68 71 77 79 83
48 50 56 62 65 68 71 77 80 83
48 51 56 62 65 68 72 77 80 83
49 51 56 62 66 69 72 78 80 83
49 51 57 63 66 69 73 78 81 83
Data for illustration only.
Lesson Overview
45 - 49 12
50 - 54 11
55 - 59 10
60 - 64 11
65 - 69 18
70 - 74 9
75 - 79 15
80 - 84 14
45 - 49 12
50 - 54 11
Data for illustration only.
Lesson Overview
20

18

16

14

12

10

0
45 - 49 50 - 54 55 - 59 60 - 64 65 - 69 70 - 74 75 - 79 80 - 84

Data for illustration only.


Lesson Overview
After this lesson, you will be able to:
• Identify and compare data types
• Describe how data are organized
for quantitative analysis
Data Types
• Data is a collection of numbers,
characters, words/text, images,
audio, or video in a raw or organized
format representing facts or
information.

• Data Types:
- Numerical (quantitative) vs.
Categorical (qualitative)
- Cross-sectional vs. Time-series
- Structured vs. Unstructured
Numerical vs. Categorical
Numerical, or quantitative, data can be:
• Continuous: Data that can take any numerical value within a
specified range
- Ex. Temperature, height, weight
• Discrete: Data resulting from a counting process
- Ex. Frequency of discrete compounding, money
Categorical, or qualitative, data can be:
• Nominal: Data that cannot be organized into a logical order
- Ex. Industry classification of stocks; telecom, energy, etc.
• Ordinal: Data that can be logically organized or ranked
- Ex. Ranking investment funds, 5 star to 1 star
© Getty Images: Anthony Devlin/Stringer, Matt Cardy/Stringer, Hector Vivas/Stringer, David Ramos/Staff
Cross-Sectional vs. Time-Series vs. Panel
• Cross-Sectional Data: Observations of one variable for different units at a given point in time
- Ex. January inflation rates for different countries
• Time-Series Data: Observations for a single unit of one variable collected over time
- Ex. Daily closing prices of a particular stock
• Panel Data: A mix of time-series and cross-sectional data
- Ex. Data table showing EPS over time for a number of companies

EPS of Three Companies in a Given Year


Time Period Company A Company B Company C
Time Series

Q1 15.53 0.84 -0.34


Q2 4.36 0.96 0.08
Q3 13.16 0.79 -2.72
Q4 12.95 0.19 0.09

Cross-Sectional
Data for illustration only.
Structured vs. Unstructured Data
• Structured data is highly organized in a pre-defined manner, usually with
repeating patterns

Market data Fundamental data Analytical data

© Getty Images: Berkah, blackred, and gorodenkoff


Structured vs Unstructured Data
• Unstructured data does not follow any conventionally organized form

Produced by Generated by Generated by sensors


individuals business processes

© Getty Images: ipopba and Westend61


Data Table – One-Dimensional Array
One-Dimensional Array: The simplest format shown below. This is time-series
data and tabulating it in this way facilitates analysis, such as identifying trends.

One-Dimensional Array: Daily Closing Prices of ABC Inc. Stock


Observation by Day Stock Price ($)
1 57.21
2 58.26
3 58.64
4 56.19
5 54.78
Source: CFA Institute
Data Table – Two-Dimensional Array
Two-Dimensional Array: Or a data table, consists of columns and rows. Below is
an example showing time-series data of three variables for ABC Inc.
Data Table for ABC Inc.
Revenue ($m) EPS ($) DPS ($)
Q1 Year 1 3,784 1.37 0
Q2 Year 1 4,236 1.78 0
Q3 Year 1 4,187 -3.38 0
Q4 Year 1 3,889 -8.66 0
Q1 Year 2 4,097 -0.34 0
Q2 Year 2 5,905 3.89 0.25
Q3 Year 2 4,997 -2.88 0.25
Q4 Year 2 4,389 -3.98 0.25
Source: CFA Institute
Summary
• Understand the different types of
data, especially the difference
between structured and
unstructured
• How random data needs to be
organized to aid understanding of
the data “story”
© 2021 CFA Institute. All rights reserved.

Up Next: Review This Lesson and


Complete the Assignment before
Moving on to the Next Lesson

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