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Data Analysis

The document discusses data analysis. It defines data analysis as the process of cleaning, processing, and extracting useful insights from raw data to help businesses make informed decisions. It then outlines the purpose and steps of data analysis. Next, it describes different types of analysis like descriptive, predictive, and prescriptive analysis. Finally, it explains key concepts in data analysis like descriptive versus inferential analysis, correlation versus regression, and measures of central tendency and variability.

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jhansi lakshmi
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43 views

Data Analysis

The document discusses data analysis. It defines data analysis as the process of cleaning, processing, and extracting useful insights from raw data to help businesses make informed decisions. It then outlines the purpose and steps of data analysis. Next, it describes different types of analysis like descriptive, predictive, and prescriptive analysis. Finally, it explains key concepts in data analysis like descriptive versus inferential analysis, correlation versus regression, and measures of central tendency and variability.

Uploaded by

jhansi lakshmi
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 PPTX, PDF, TXT or read online on Scribd
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Presented by

DATA ANALYSIS
Jhansi Lakshmi K P
Assistant Professor
Department of Mechanical Engineering
GEC, Haveri
According to Forbes, the data analytics profession is exploding. The United States Bureau of Labor Statistics
forecasts impressively robust growth for data science jobs skills and predicts that the data science field will
grow about 28 percent through 2026. Amstat.org backs up these predictions, reporting that, by the end of 2021,
almost 70 percent of business leaders surveyed will look for prospective job candidates that have data skills.

Starting off as a Data Analysis, you can quickly move into Senior Analyst, then Analytics Manager, Director of
Analytics, or even Chief Data Officer (CDO).

Data is defined as” information, especially facts or numbers, collected to be examined and considered and used
to help decision making, or information in an electronic form that can be stored and used”

Data analysis is the process of cleaning, changing, and processing raw data, and extracting actionable, relevant
information that helps businesses make informed decisions. The procedure helps reduce the risks inherent in
decision-making by providing useful insights and statistics, often presented in charts, images, tables, and
graphs.

The purpose of data analysis


To answer the research questions and to help determine the trends and relationships among the variables.
Data Analysis is essential as it helps businesses understand their customers better, improves sales, improves
customer targeting, reduces costs, and allows for the creation of better problem-solving strategies.
STEPS IN DATA
ANALYSIS
1. Data requirement gathering
2. Data collection
3. Data cleaning
4. Data analysis
5. Data interpretation
6. Data visualisation
TYPES OF DATA ANALYSIS
1. Diagnostic analysis
2. Predictive analysis
3. Prescriptive analysis
4. Statistical analysis
1. Descriptive data analysis
2. Inferential data analysis
DIFFERENCES BETWEEN
DESCRIPTIVE ANALYSIS AND
INFERENTIAL ANALYSIS
Descriptive analysis Inferential analysis
The first level of analysis, this helps These complex analyses show the
researchers find absolute numbers to relationships between multiple variables to
summarize individual variables and find generate results and make predictions
patterns.
Examples are:
Examples are: Correlation: describes the relation between 2
Mean: numerical average variables
Median: midpoint Regression: shows or predicts the
relationship between two variables
Percentage: ratio as a fraction of 100
Analysis of variance: tests the extent to
Range: highest to lowest values which 2+groups differ
DESCRIPTIVE ANALYSIS

The descriptive analysis tool generates a report of univariate statistics for data the input range , providing
information about the central tendency and variability of data.
The different measures that can be found in descriptive analysis are:
Standard error: The standard error of the mean, or simply standard error, indicates how different the
population mean is likely to be from a sample mean. It tells you how much the sample mean would
vary if you were to repeat a study using new samples from within a single population
Standard deviation: The standard deviation is the average amount of variability in your dataset. It
tells you, on average, how far each value lies from the mean. A high standard deviation means that
values are generally far from the mean, while a low standard deviation indicates that values are clustered
close to the mean.
Sample variance :Sample variance can be defined as the expectation of the squared difference of data
points from the mean of the data set. It is an absolute measure of dispersion and is used to check the
deviation of data points with respect to the data's average.
Kurtosis is a statistical measure that defines how heavily the tails of a distribution differ from the tails of a normal
distribution. In other words, kurtosis identifies whether the tails of a given distribution contain extreme values.

In finance, kurtosis is used as a measure of financial risk. A large kurtosis is associated with a high risk for an
investment because it indicates high probabilities of extremely large and extremely small returns. On the other hand, a
small kurtosis signals a moderate level of risk because the probabilities of extreme returns are relatively low.
A skewed distribution occurs when one tail is longer than the other. Skewness defines the asymmetry of a
distribution. Unlike the familiar normal distribution with its bell-shaped curve, these distributions are
asymmetric. The two halves of the distribution are not mirror images because the data are not distributed
equally on both sides of the distribution’s peak.

A general guideline for skewness is that if the number is greater than +1 or lower than –1, this is an
indication of a substantially skewed distribution. For kurtosis, the general guideline is that if the number is
greater than +1, the distribution is too peaked. Likewise, a kurtosis of less than –1 indicates a distribution that
is too flat. Distributions exhibiting skewness and/or kurtosis that exceed these guidelines are considered non
normal."
DIFFERENCE BETWEEN
CORRELATION AND
REGRESSION
Correlation Regression

1. A statistical measure that defines the 1. Describes how an independent


correlation ship or association of variable is associated with the
two variables dependent variable
2. No difference 2. Both variables are different
3. To describe linear relation ship 3. To fit the best line and estimate one
between two variables variable based on another variable
4. To fin the value expressing the 4. To estimate values of random
relation ship between two variables. variables based on values of a fixed
variable

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