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Unit - 5 Multivariate Analysis

The document discusses multivariate and time series analysis, emphasizing the importance of evaluating multiple variables to identify associations and forecast future trends. It outlines techniques for multivariate analysis, including dependence and interdependence methods, and explains the significance of causal explanations and the distinction between correlation and causation. Additionally, it covers the characteristics and visualization of time series data, highlighting its application in identifying trends and making predictions over time.

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120 views29 pages

Unit - 5 Multivariate Analysis

The document discusses multivariate and time series analysis, emphasizing the importance of evaluating multiple variables to identify associations and forecast future trends. It outlines techniques for multivariate analysis, including dependence and interdependence methods, and explains the significance of causal explanations and the distinction between correlation and causation. Additionally, it covers the characteristics and visualization of time series data, highlighting its application in identifying trends and making predictions over time.

Uploaded by

mk4997320
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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UNIT - 5

MULTIVARIATE &
TIME SERIES
ANALYSIS
Introducing a Third Variable - Causal
Explanations - Three-Variable Contingency
Tables and Beyond - Longitudinal Data –
Fundamentals of TSA – Characteristics of
time series data – Data Cleaning – Time-
based indexing – Visualizing – Grouping –
Resampling.
MULTIVARIATE ANALYSIS
Multivariate analysis (MVA) involves
evaluating multiple variables (more than
two) to identify any possible association
among them.
It allows more than two variables at a
time.
WHY DO COMPANIES USE
MULTIVARIATE ANALYSIS?
Conducting multivariate analyses can help companies
forecast future opportunities, risks, and demand for
products.
This helps with investment strategies, business decisions,
and setting expectations.
A company may also use MVA to gain new insights.
This could include uncovering new customer targets or
identifying market patterns that exist during certain times of
the year or hours of the day.
MULTIVARIATE DATA
ANALYSIS
There are many different techniques for
multivariate analysis, and they can be divided
into two categories:
1. Dependence techniques
2. Interdependence techniques
DEPENDENCE METHODS
Dependence methods are used when one or some of
the variables are dependent on others.
Dependence looks at cause and effect; in other
words, can the values of two or more independent
variables be used to explain, describe, or predict the
value of another, dependent variable?
Example, the dependent variable of “weight” might
be predicted by independent variables such as
“height” and “age.
INTERDEPENDENCE METHODS
Interdependence methods are used to understand
the structural makeup and underlying patterns
within a dataset.
In this case, no variables are dependent on others, so
you’re not looking for causal relationships.
Rather, interdependence methods seek to give
meaning to a set of variables or to group them
together in meaningful ways.
One is about the effect of certain variables on others,
while the other is all about the structure of the
dataset.
PRINCIPLE OF CASUAL EXPLANATION
Causal explanation is valuable because it explains how and
why an effect occurs, and consequently, provides
information regarding when and where the relationship can
be replicated.
To discover whether X causes Y, or whether the independent
variable causes changes in the dependent variable.
An explanation is an answer to a why-question, and so a
causal explanation is an answer to ‘Why X?’ that says
something about the causes of X.
For example, ‘Because it rained’ as an answer to ‘Why is the
ground wet?’ is a causal explanation.
CORRELATION AND CAUSATION
CORRELATION AND CAUSATION
Causation means one thing causes another—in
other words, action A causes outcome B.
On the other hand, correlation is simply a
relationship where action A relates to action B—
but one event doesn’t necessarily cause the
other event to happen.
THREE VARIABLE CONTINGENCY
TABLES & BEYOND
Three-variable contingency tables involve three binary or
categorical variables.
We described two-way contingency tables earlier as
having I rows and J columns, forming an I × J matrix.
If a third variable is included, the three-way contingency
table is described as I × J × K, where I is the number of
rows, J is the number of columns, and K is the number of
superordinate columns each level containing a 2 × 2
matrix
EXPLANATORY VARIABLE VS.
RESPONSE VARIABLE

An explanatory variable is the expected cause, and it explains


the results.
A response variable is the expected effect, and it responds to
explanatory variables.
As you have seen, AI is growing in
popularity. From agriculture to
healthcare, AI is becoming a
standard part of our daily lives. Give
your response as some areas of your
everyday life that AI touches.
TIME SERIES DATA
Time series data is a collection of observations
(n) obtained through repeated measurements
over time.
Plot the points on a graph, and one of your axes
would always be time.
For instance, how much inventory (Stock) was
sold in a store from one day to the next.
WHAT IS TIME SERIES ANALYSIS?
Time series analysis is the collection of data at specific
intervals over a period to identify trends, seasonality,
and residuals to aid in forecasting a future event.
Time series analysis involves inferring what has
happened to a series of data points in the past and
attempting to predict future values.
Analyzing time series data allows for extracting
meaningful statistics and other data characteristics.
WHAT IS TIME SERIES ANALYSIS?
A very straightforward time series analysis example might
be the rise and fall of the temperature over the course of a
day.
By tracking the specific temperature outside at hourly
intervals for 24 hours, you have a complete picture of the
rise and fall of the temperature in your area.
Time series visualization and analytics let you visualize time
series data and spot trends to track change over time.
Time series data can be queried and graphed in line graphs,
tables and more.
WHAT IS A TIME SERIES CHART?
A time series chart refers to data points that have
been visually mapped across two distinct axes:
quantity measured and time.
They are considered an ideal way for analyzers to
quickly determine anything from data trends to the
rate of change.
In a classic x-y graph, the horizontal axis of the chart
is used to plot increments of time while the vertical
axis pinpoints values of the variable being measured.
TIME SERIES LINE GRAPHS AND BAR
GRAPHS
CHARACTERISTICS OF TIME-SERIES
DATA
Time stamp
Structure
Stream-like nature
Stability
Trend Focus
High write/read ratio
Immutability
Retention Policy
Real Time Computing
Aggregation

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