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Data Analysis Is The Process of Gatherin1

Data analysis involves gathering, cleaning, analyzing, and interpreting data to find patterns and correlations that generate insights. It helps businesses understand past performance and informs future decision making. There are four primary types of data analysis: descriptive analyzes what happened, diagnostic analyzes why it happened, predictive analyzes what will happen next, and prescriptive analyzes what should be done. The data analysis process includes defining problems and goals, setting metrics, gathering and cleaning data, analyzing and interpreting results, and presenting findings to impact decision making.

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Karamat Barlaas
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37 views

Data Analysis Is The Process of Gatherin1

Data analysis involves gathering, cleaning, analyzing, and interpreting data to find patterns and correlations that generate insights. It helps businesses understand past performance and informs future decision making. There are four primary types of data analysis: descriptive analyzes what happened, diagnostic analyzes why it happened, predictive analyzes what will happen next, and prescriptive analyzes what should be done. The data analysis process includes defining problems and goals, setting metrics, gathering and cleaning data, analyzing and interpreting results, and presenting findings to impact decision making.

Uploaded by

Karamat Barlaas
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Data analysis is the process of gathering, cleaning, analyzing and mining data, interpreting Commented [EKH1]:

results, and reporting the findings.

With data analysis we find Patterns within data and Correlations between different data points. And
it is through these patterns and correlations that insights are generated, and conclusions are drawn.

Data analysis helps businesses understand their past performance and informs their decision-making for

future actions. Using data analysis, Businesses can validate a course of action before committing to it,

Saving valuable time and resources and also ensuring greater success.

We will explore four primary types of data analysis, each with a different goal and place in the data

analysis process.
1. Descriptive Analytics helps answer questions about what happened over a given period of

time by summarizing past data and presenting the findings to stakeholders. It helps provide

essential insights into past events. For example, tracking past performance based on the

organization's key performance indicators or cash flow analysis.

2. Diagnostic analytics helps answer the question. Why did it happen? It takes the

insights from descriptive analytics to dig deeper to find the cause of the outcome.

For example, sudden change in traffic to a website without an obvious cause or an increase in

sales in a region where there has been no change in marketing.

3. Predictive analytics helps answer the question, what will happen next? Historical data

and trends are used to predict future outcomes. Some of the areas in which businesses apply

predictive analysis are risk assessment and sales forecasts. It's important to note that the

purpose of predictive analytics is not. to say what will happen in the future, its objective is to

forecast what might happen in the future. All predictions are probabilistic in nature

4. Prescriptive Analytics helps answer the question, what should be done about it? By

analyzing past decisions and events, the likelihood of different outcomes is estimated on the

basis of which a course of action is decided. Self-driving cars are a good example of Prescriptive

Analytics. They analyze the environment to make decisions regarding speed, changing lanes,

which route to take, etc. Or airlines automatically adjusting ticket prices based on customer

demand. Gas prices, the weather or traffic on connecting routes.

Now let's look at some of the key steps in any data analysis process. Understanding the problem

and desired result. Data analysis begins with understanding the problem that needs to be solved and

the desired outcome that needs to be achieved. Where you are and where you want to be needs to
be clearly defined before the analysis process can begin. Setting a clear metric. This stage of the

process includes deciding what will be measured. For example, number of product X sold in a region

and how it will be measured, for example. In a quarter or during a festival season, gathering data

once you know what you're going to measure and how you're going to measure it, you identify the

data you require, the data sources you need to pull this data from, and the best tools for the job.

Cleaning data. Having gathered the data, the next step is to fix quality issues in the data that could

affect the accuracy of the analysis. This is a critical step because the accuracy of the analysis can only

be ensured if the data is clean. You will clean the data for missing or incomplete values and outliers.

For example, a customer demographics data in which the age field has a value of 150 is an outlier.

You will also standardize the data coming in from multiple sources. Analyzing and mining data. Once

the data is clean, you will extract and analyze the data from different perspectives. You may need to

manipulate your data in several different ways to understand the trends, identify correlations and

find patterns and variations. Interpreting results. After analyzing your data and possibly conducting

further research, which can be an iterative loop, it's time to interpret your results. As you interpret

your results, you need to evaluate if your analysis is defendable against objections, and if there are

any limitations or circumstances under which your analysis may not hold true. Presenting your

findings.

Ultimately, the goal of any analysis is to impact decision making. The ability to communicate and

present your findings in clear and impactful ways is as important a part of the data analysis process

as is the analysis itself. Reports, dashboards, charts, graphs, maps, case studies are just some of the

ways in which you can present your data.

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