EDA Question Bank Answers

1. Key Differences Between Primary, Secondary, and

Tertiary Data

- Question: What are the key differences between

Primary, Secondary, and Tertiary data? Provide
examples of each.
- Answer:
- Primary Data: Data collected directly by the
researcher for a specific purpose.
- Example: Conducting surveys or interviews to gather
customer feedback.
- Secondary Data: Data collected by someone else for
a different purpose but used by the researcher.
- Example: Using government census data for market
research.
- Tertiary Data: Summarized or analyzed data, often
derived from primary and secondary sources.
- Example: Reading a review article that summarizes
findings from multiple studies.
- Diagram: A flowchart showing the relationship
between primary, secondary, and tertiary data.
2. Bidimensional Graphical Representations

- Question: Explain Bidimensional Graphical

Representations and their significance in data
visualization.
- Answer:
- Definition: Graphical representations that display the
relationship between two variables.
- Examples:
- Scatter Plot: Shows the relationship between two
continuous variables.
- Heatmap: Displays the relationship between two
categorical variables using color intensity.
- Significance: Helps identify patterns, trends, and
correlations between variables.
 - Example: A scatter plot showing the relationship
between advertising spend and sales revenue.
- Graph: A scatter plot with a trend line.

3. Distributional Assumptions in EDA

- Question: Discuss the Distributional Assumptions in

Exploratory Data Analysis (EDA).
- Answer:
- Definition: Assumptions about the distribution of data,
such as normality, uniformity, or skewness.
- Importance: These assumptions guide the choice of
statistical tests and models.
- Example: In hypothesis testing, the assumption of
normality is crucial for tests like the t-test.
- Graph: A histogram showing a normal distribution.
4. Exploratory Data Analysis (EDA)

- Question: Explain Exploratory Data Analysis (EDA) in

detail, highlighting its importance and techniques.
- Answer:
- Definition: EDA is the process of analyzing and
summarizing datasets to understand their main
characteristics, often using visual methods.
- Techniques:
- Summary Statistics: Mean, median, mode, standard
deviation.
- Visualizations: Histograms, box plots, scatter plots.
- Data Cleaning: Handling missing values, outliers,
and inconsistencies.
- Importance: EDA helps identify patterns, trends, and
anomalies in data.
- Example: A data scientist uses EDA to analyze
customer purchase behavior and identify key trends.
- Diagram: A flowchart showing the steps in EDA
(Data Collection → Data Cleaning → Visualization
→ Analysis).
5. Outliers and Their Types

- Question: Explain Outliers and their types. What

techniques can be used to identify outliers in a dataset?
- Answer:
- Definition: Outliers are data points that deviate
significantly from other data points in a dataset.
- Types:
- Univariate Outliers: Outliers in a single variable (e.g.,
extremely high income).
- Multivariate Outliers: Outliers in multiple variables
(e.g., a person with high income but low spending).
- Techniques to Identify Outliers:
- Box Plot: Visualizes outliers using the interquartile
range (IQR).
- Z-Score: Identifies outliers based on standard
deviations from the mean.
 - Example: In a dataset of house prices, a house priced
at $10 million while most houses are priced between
$100,000 and $500,000 is an outlier.
- Graph: A box plot showing outliers.

6. Imputation Techniques for Missing Data

- Question: Describe the different types of imputation

techniques used to handle missing data. Provide
examples of scenarios where each technique would be
appropriate.
- Answer:
- Definition: Imputation is the process of replacing
missing data with substituted values.
- Techniques:
- Mean/Median Imputation: Replace missing values
with the mean or median of the variable.
- Example: Replacing missing age values with the
median age.
- Regression Imputation: Predict missing values using
regression models.
- Example: Predicting missing income values based
on education level.
- K-Nearest Neighbors (KNN): Replace missing
values with the average of the nearest neighbors.
- Example: Replacing missing values in a dataset of
customer transactions.
 - Diagram: A flowchart showing different imputation
techniques.

7. Nominal, Ordinal, Interval, and Ratio Data

- Question: Differentiate between Nominal, Ordinal,

Interval, and Ratio data with examples.
- Answer:
- Nominal Data: Categories with no order (e.g., types of
fruits).
- Ordinal Data: Categories with order (e.g., education
levels: high school, bachelor’s, master’s).
- Interval Data: Numerical data with no true zero (e.g.,
temperature in Celsius).
- Ratio Data: Numerical data with a true zero (e.g.,
height, weight).
- Example: A survey collects nominal data (gender),
ordinal data (satisfaction level), interval data
(temperature), and ratio data (income).
- Diagram: A table comparing the four types of data.

8. Types of Data

- Question: Identify the type of data for each case:

 - a. Quarterly GDP growth rates of a country over five
years.
- b. Employment status of individuals tracked over five
years.
- c. Types of vegetables sold in a market.
- d. Interviewing a scientist for their research findings.
- e. Reading a scientific review article on a topic.
- Answer:
- a. Interval Data: Quarterly GDP growth rates are
numerical with no true zero.
- b. Nominal Data: Employment status is categorical
with no order.
- c. Nominal Data: Types of vegetables are categorical
with no order.
- d. Primary Data: Interviewing a scientist involves
collecting data directly.
- e. Tertiary Data: Reading a scientific review article
involves summarized data.

9. Steps in Data Discovery

- Question: Explain the steps involved in Data Discovery

and how they help in data analysis.
- Answer:
- Steps:
1. Data Collection: Gather raw data from various
sources.
 2. Data Cleaning: Handle missing values, outliers,
and inconsistencies.
3. Data Exploration: Use visualizations and summary
statistics to understand the data.
4. Data Analysis: Apply statistical techniques to
uncover patterns and insights.
- Example: A data scientist discovers patterns in
customer data by following these steps.
- Diagram: A flowchart showing the data discovery
process.

10. Unidimensional Graphical Representations

- Question: Explain Unidimensional Graphical

Representations and their importance in data
visualization.
- Answer:
- Definition: Graphical representations that display the
distribution of a single variable.
- Examples:
- Histogram: Shows the distribution of a continuous
variable.
- Bar Chart: Displays the frequency of categorical
variables.
- Importance: Helps in understanding the distribution
and central tendency of a single variable.
 - Example: A histogram showing the distribution of
ages in a population.
- Graph: A histogram.

11. Data Quality Issues

- Question: Describe the common types of data quality

issues encountered in raw datasets. Provide examples
of how each issue can affect data analysis.
- Answer:
- Common Issues:
- Missing Data: Data points that are not recorded.
- Duplicate Data: Repeated entries in the dataset.
- Inconsistent Data: Data that does not follow a
consistent format.
- Example: A dataset with missing values can lead to
inaccurate analysis.
- Diagram: A flowchart showing data quality issues and
solutions.

12. Challenges in Data Accessing

- Question: Mention the challenges and issues related to

Data Accessing in business analytics.
- Answer:
 - Challenges:
- Data Privacy: Ensuring that sensitive data is
protected.
- Data Security: Preventing unauthorized access to
data.
- Data Accessibility: Ensuring that data is easily
accessible to authorized users.
- Example: A company faces challenges in accessing
customer data due to privacy regulations.

13. Data Preprocessing

- Question: Define Data Preprocessing and explain its

role in improving data quality.
- Answer:
- Definition: The process of cleaning and transforming
raw data into a usable format.
- Role: Improves data quality and ensures that the data
is ready for analysis.
- Example: A dataset of customer transactions is
preprocessed by removing duplicates and handling
missing values.
- Diagram: A flowchart showing the data preprocessing
steps.
14. Types of Missing Data

- Question: What are the different types of missing data

(MCAR, MAR, MNAR)? Explain with examples.
- Answer:
- MCAR (Missing Completely at Random): Missing data
is unrelated to any other variable.
- Example: A survey respondent accidentally skips a
question.
- MAR (Missing at Random): Missing data is related to
other observed variables.
- Example: Younger respondents are less likely to
report their income.
- MNAR (Missing Not at Random): Missing data is
related to the missing values themselves.
- Example: High-income individuals are less likely to
report their income.
- Diagram: A flowchart showing the types of missing
data.

15. Feature Engineering

- Question: Discuss the importance of feature

engineering in data analysis.
- Answer:
 - Definition: The process of creating new features or
transforming existing ones to improve model
performance.
- Importance: Enhances the predictive power of
machine learning models.
- Example: Creating a "day of the week" feature from a
timestamp to predict customer behavior.
- Diagram: A flowchart showing the feature engineering
process.

16. Data Transformation Techniques

- Question: Explain data transformation techniques and

their applications in data preprocessing.
- Answer:
- Definition: Techniques used to transform data into a
suitable format for analysis.
- Examples:
- Normalization: Scaling data to a range (e.g., 0 to 1).
- Standardization: Scaling data to have a mean of 0
and a standard deviation of 1.
- Example: Normalizing pixel values in an image
dataset for machine learning.
- Diagram: A flowchart showing data transformation
techniques.
17. Data Normalization vs. Standardization

- Question: What is data normalization? How does it

differ from data standardization?
- Answer:
- Normalization: Scales data to a range (e.g., 0 to 1).
- Example: Scaling customer age data to a range of 0
to 1.
- Standardization: Scales data to have a mean of 0 and
a standard deviation of 1.
- Example: Standardizing features in a dataset for
linear regression.
- Diagram: A comparison chart showing normalization
and standardization.

18. Correlation Analysis

- Question: Discuss the role of correlation analysis in

data exploration.
- Answer:
- Definition: Measures the strength and direction of the
relationship between two variables.
- Role: Helps identify relationships between variables in
data exploration.
- Example: A correlation analysis between advertising
spend and sales revenue.
 - Graph: A scatter plot showing the correlation between
two variables.

19. Data Sampling Techniques

- Question: Explain the different types of data sampling

techniques used in data analysis.
- Answer:
- Random Sampling: Every individual in the population
has an equal chance of being selected.
- Example: A lottery system where each ticket has an
equal chance of being drawn.
- Stratified Sampling: The population is divided into
strata (subgroups), and samples are taken from each
stratum.
- Example: A researcher divides a population into age
groups (e.g., 18-25, 26-35) and samples from each
group.
- Cluster Sampling: The population is divided into
clusters, and entire clusters are randomly selected for
analysis.
- Example: A company divides its customers by
region and randomly selects a few regions to survey.
- Diagram: A comparison chart showing random,
stratified, and cluster sampling.
20. Importance of Data Cleaning

- Question: Discuss the importance of Data Cleaning in

business analytics.
- Answer:
- Definition: The process of detecting and correcting (or
removing) errors, inconsistencies, and inaccuracies in a
dataset.
- Importance:
- Improves Data Quality: Clean data ensures accurate
and reliable analysis.
- Enhances Decision-Making: Clean data leads to
better insights and decisions.
- Saves Time and Resources: Cleaning data upfront
reduces the need for rework during analysis.
- Example: A dataset of customer transactions is
cleaned by removing duplicate entries, handling missing
values, and correcting inconsistent formatting.
- Diagram: A flowchart showing the data cleaning
process.

21. Handling Duplicate Data

- Question: What are the various techniques to handle

duplicate data in a dataset?
- Answer:
 - Techniques:
- Removing Duplicates: Deleting repeated entries.
- Example: Removing duplicate customer records
from a database.
- Merging Duplicates: Combining duplicate records
into a single entry.
- Example: Merging duplicate customer records with
the same name and address.
- Importance: Handling duplicates ensures data
accuracy and consistency.
- Example: A retail company removes duplicate entries
from its sales dataset to ensure accurate revenue
calculations.
- Diagram: A flowchart showing the process of handling
duplicate data.

22. Data Aggregation

- Question: Explain the concept of data aggregation and

its significance in analytics.
- Answer:
- Definition: Data aggregation is the process of
summarizing data into a more usable format, such as
totals, averages, or counts.
- Significance:
- Simplifies Analysis: Aggregated data is easier to
analyze and interpret.
 - Identifies Trends: Aggregation helps identify patterns
and trends in large datasets.
- Example: A company aggregates daily sales data into
monthly sales totals to analyze seasonal trends.
- Diagram: A bar chart showing monthly sales totals.

23. Visualization Techniques for Univariate and

Multivariate Data

- Question: What are the common visualization

techniques used for univariate and multivariate data?
- Answer:
- Univariate Data: Data involving a single variable.
- Visualization Techniques:
- Histogram: Shows the distribution of a continuous
variable.
- Bar Chart: Displays the frequency of categorical
variables.
- Example: A histogram showing the distribution of
ages in a population.
- Multivariate Data: Data involving multiple variables.
- Visualization Techniques:
- Scatter Plot: Shows the relationship between two
continuous variables.
- Heatmap: Displays the relationship between two
categorical variables using color intensity.
 - Example: A scatter plot showing the relationship
between advertising spend and sales revenue.
- Graph: A scatter plot with a trend line.

24. Box Plot and Histogram

- Question: Discuss Box Plot and Histogram as

graphical tools for data distribution analysis.
- Answer:
- Box Plot:
- Definition: A graphical representation of data using
quartiles to show the distribution and identify outliers.
- Use: Helps visualize the spread and skewness of
data.
- Example: A box plot showing the distribution of
house prices.
- Histogram:
- Definition: A graphical representation of the
frequency distribution of a continuous variable.
- Use: Helps understand the distribution and central
tendency of data.
- Example: A histogram showing the distribution of
employee salaries.
- Diagram: A side-by-side comparison of a box plot and
a histogram.
25. Dimensionality Reduction Techniques (PCA)

- Question: Explain the importance of dimensionality

reduction techniques like PCA in data analysis.
- Answer:
- Definition: Dimensionality reduction techniques
reduce the number of features in a dataset while
preserving the most important information.
- Principal Component Analysis (PCA):
- Definition: A technique that transforms data into a
lower-dimensional space by identifying the directions
(principal components) that maximize variance.
- Use: Reduces the complexity of data while retaining
its structure.
- Example: Reducing the number of features in an
image dataset from 1000 to 50 for faster processing.
- Diagram: A graph showing the original data and the
reduced-dimensional data after PCA.

26. Steps in Data Wrangling

- Question: Describe the steps involved in data

wrangling and their importance.
- Answer:
 - Definition: Data wrangling is the process of cleaning,
transforming, and integrating raw data into a usable
format for analysis.
- Steps:
1. Data Collection: Gather raw data from various
sources.
2. Data Cleaning: Handle missing values, outliers,
and inconsistencies.
3. Data Transformation: Normalize, standardize, or
aggregate data.
4. Data Integration: Combine data from multiple
sources.
- Importance: Ensures that the data is ready for
analysis.
- Example: A data scientist wrangles customer data by
cleaning, transforming, and integrating it into a single
dataset for analysis.
- Diagram: A flowchart showing the data wrangling
process.

27. Data Integrity and Security

- Question: Explain the role of data integrity and security

in analytics.
- Answer:
 - Definition: Data integrity refers to the accuracy and
consistency of data, while data security involves
protecting data from unauthorized access or breaches.
- Role:
- Data Integrity: Ensures that data is accurate and
reliable for analysis.
- Data Security: Protects sensitive data from breaches
and cyberattacks.
- Example: A company implements encryption and
access controls to protect customer data.
- Diagram: A flowchart showing data integrity and
security measures.

28. Impact of Biased Data

- Question: Discuss the impact of biased data in

decision-making and machine learning models.
- Answer:
- Definition: Biased data is data that is not
representative of the population, leading to skewed
results and inaccurate conclusions.
- Impact:
- Inaccurate Decisions: Biased data can lead to poor
business decisions.
- Biased Machine Learning Models: Models trained on
biased data will produce biased predictions.
 - Example: A biased dataset of job applicants leads to
discriminatory hiring practices.
- Diagram: A graph showing the impact of biased data
on model predictions.

29. Handling Categorical Data

- Question: What are the best practices for handling

categorical data in business analytics?
- Answer:
- Techniques:
- One-Hot Encoding: Converts categorical variables
into binary vectors.
- Example: Converting "gender" into binary columns
(Male: 1 or 0, Female: 1 or 0).
- Label Encoding: Assigns a unique number to each
category.
- Example: Converting "product type" into numerical
values (e.g., Electronics: 1, Clothing: 2).
- Importance: Proper handling of categorical data
ensures accurate analysis and model performance.
- Example: A machine learning model uses one-hot
encoding to process categorical data like product
categories.
- Diagram: A flowchart showing the process of handling
categorical data.
30. Data Governance

- Question: Explain the role of data governance in

ensuring high-quality data management.
- Answer:
- Definition: Data governance refers to the policies,
processes, and standards for managing data quality,
security, and accessibility.
- Role:
- Ensures Data Quality: Maintains accurate and
consistent data.
- Protects Data Security: Implements measures to
prevent unauthorized access.
- Promotes Data Accessibility: Ensures that data is
easily accessible to authorized users.
- Example: A company implements data governance
policies to ensure that customer data is accurate,
secure, and accessible.
- Diagram: A flowchart showing the components of
data governance.