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BA 14 - Decision-Making

The document discusses statistical data analysis for decision-making, explaining the progression from raw data to wisdom through various stages of data processing. It covers types of data, levels of measurement, normal distribution, skewness, correlation analysis, and data visualization techniques. The information is aimed at aiding effective decision-making practices in contexts such as fabric strength testing.

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Md.Tipu Sultan
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16 views13 pages

BA 14 - Decision-Making

The document discusses statistical data analysis for decision-making, explaining the progression from raw data to wisdom through various stages of data processing. It covers types of data, levels of measurement, normal distribution, skewness, correlation analysis, and data visualization techniques. The information is aimed at aiding effective decision-making practices in contexts such as fabric strength testing.

Uploaded by

Md.Tipu Sultan
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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Statistical Data Analysis for

Decision-Making Practices
By
Dr. Abu Hamja
"The tensile strength of five fabric
Raw, unprocessed facts or
Data measurements.
samples is: 42, 45, 41, 47, 43 (units in
N)."

Processed or organized data “The average tensile strength of the


Information that has meaning tested fabrics is 43.6 N, with a
standard deviation of 2.2 N”

"Our fabrics meet the minimum


Understanding, Insights gained strength requirement of 40 N, and
Knowledge
by interpreting the information. the variation is within acceptable
control limits”

"Since the fabric quality is consistent and


The ability to make sound decisions meets standards, we can proceed with
Wisdom using large-scale production without changes—
knowledge, experience, and but we’ll keep monitoring for any unusual
context. variation to prevent future defects”
Types of Data

Categorical Numerical
Data/Qualitative Data/Quantitative
Data Data

Nominal Ordinal Interval Ratio


Level of Measurement

Nominal (qualitative): Categorizes without order, e.g., fabric type


(cotton, silk);

Ordinal (qualitative): Categories with order, e.g., quality grade (low,


medium, high);

Interval (quantitative): Numeric with equal intervals, no true zero,


e.g., dyeing temperature (30°C, 40°C);

Ratio (quantitative): Numeric with true zero, e.g., yarn strength (20
N, 50 N).
Normal Distribution
•Definition: A normal distribution is a symmetric, bell-shaped curve where most
of the data points cluster around the mean. It’s fully described by its mean (μ) and
standard deviation (σ).

•Properties: In a normal distribution:

•About 68% of the data falls within ±1σ


•95% within ±2σ
•and 99.7% within ±3σ

•Importance: Many statistical methods assume normality because it's common in


nature and human behavior (e.g., heights, test scores), and it underlies key
concepts like the Central Limit Theorem, which states that the sampling
distribution of the mean tends to be normal, even if the original data isn’t.
Skewness
Definition of Skewness
● Skewness measures the asymmetry of a data
distribution. It tells us whether the data is
symmetrically distributed, or if it leans more to
the left or right of the mean.

● Types of Skewness
○ Positive skew (Right-skewed): Tail on the
right side is longer. Mean > Median.
○ Negative skew (Left-skewed): Tail on the
left side is longer. Mean < Median.
○ Zero skew: Symmetrical distribution. Mean =
Median
Correlation Analysis

•Pearson Correlation: Evaluates the linear relationship between two continuous,


normally distributed variables.

•Spearman's Rank Correlation: Measures the strength and direction of a monotonic


relationship between two ordinal or non-normally distributed continuous variables.

•Eta Coefficient (η): Assesses the strength of association between a categorical


independent variable and a continuous dependent variable, especially in ANOVA-like
contexts.
Pearson Correlation
Pearson correlation measures the strength
and direction of the linear relationship
between two continuous variables, ranging
from -1 (perfect negative) to +1 (perfect
positive). A value close to 0 indicates little to
no linear correlation.
Spearman’s Correlation Analysis

•Spearman's rank correlation is based on the


ranks of the data rather than the actual values,
making it suitable for ordinal or non-linear data.

•It is less sensitive to outliers compared to


Pearson correlation and is used to measure
monotonic relationships between variables.
Correlation Analysis

Variable Type Test to Use

Numerical vs Numerical(Normal Data) Pearson correlation


Ordinal vs Numerical(Not Normal) Spearman’s rank correlation
Categorical vs Categorical ANOVA
Ordinal vs Nominal Eta coefficient
Data Visualization
•Bar Graph: Used to compare discrete categories or groups, with rectangular bars representing the
value of each category.
•Pie Chart: Represents data as slices of a circle, showing proportions or percentages of a whole.

•Line Graph: Shows trends over time or continuous data, with points connected by straight lines to
illustrate changes.
•Histogram: Displays the distribution of numerical data by grouping data into bins and plotting the
frequency of each bin.
•Scatter Plot: Displays the relationship between two continuous variables with points representing
data values on a two-dimensional axis.
•Box Plot (Box and Whisker Plot): Visualizes the distribution of data based on five summary
statistics (minimum, first quartile, median, third quartile, and maximum).
•Heatmap: Uses color to represent values in a matrix, often for visualizing correlations or patterns
in large datasets.
•Area Chart: Similar to a line chart but with the area below the line filled in, emphasizing the
magnitude of changes over time.
•Bubble Chart: An extension of the scatter plot, where data points are represented by bubbles with
varying sizes to show a third variable.
•Violin Plot: Combines aspects of box plots and density plots to display the distribution of data and
its probability density.
Thank you

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