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8 views

10 Basic Analysis Techniques

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sriyogesh223
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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U18AII5202 – EXPLORATORY DATA

ANALYSIS AND VISUALIZATION

UNIT I – ANALYSIS TECHNIQUES


TOPIC: BASIC ANALYSIS TECHNIQUES

UNIT I - INTRODUCTION TO ADVANCED DATA MODELING


Basic Analysis Techniques
Data analytics involves the application of various techniques to analyze, interpret,
and visualize data, enabling decision-making and the discovery of patterns or trends.
Below are some foundational analysis techniques commonly used in data analytics.
● Descriptive Statistics
● Inferential Statistics
● Correlation Analysis
● Trend Analysis
● Segmentation Analysis
● Anomaly Detection
Descriptive Statistics
Definition: Descriptive statistics summarize and describe the main features of a dataset.
This includes measures of central tendency, variability, and distribution.

Key Concepts:
● Mean (Average): The sum of all values divided by the number of values.
● Median: The middle value when the data is sorted.
● Mode: The most frequently occurring value in the dataset.
● Standard Deviation: Measures the amount of variation or dispersion from the mean.
● Variance: The square of the standard deviation, representing the spread of data
points.

Real-Time Example:
Sales Performance: A retail company analyzes the average sales per day (mean),
identifies the most common sales amount (mode), and measures the variability in daily
sales (standard deviation) to understand performance trends.
Inferential Statistics
Definition: Inferential statistics involve making predictions or inferences about a population
based on a sample of data. This includes hypothesis testing, confidence intervals, and
regression analysis.

Key Concepts:
● Hypothesis Testing: Assessing a hypothesis about a population parameter (e.g., testing
whether a new drug is more effective than an existing one).
● Confidence Intervals: A range of values that is likely to contain the population parameter
with a certain level of confidence (e.g., 95% confidence interval).
● Regression Analysis: Understanding the relationship between dependent and independent
variables (e.g., predicting sales based on advertising spend).

Real-Time Example:
A/B Testing in Marketing: A company tests two different ad campaigns (A and B) by
applying hypothesis testing to determine which campaign leads to higher conversion rates,
using a sample of data from each campaign.
Correlation Analysis
Definition: Correlation analysis measures the strength and direction of the
relationship between two variables. It helps to identify whether an increase or
decrease in one variable corresponds to an increase or decrease in another.

Key Concepts:
● Pearson Correlation Coefficient: Measures linear correlation between two
variables, ranging from -1 to 1.
● Spearman Rank Correlation: Measures the monotonic relationship between
two variables, useful when the data is not normally distributed.

Real-Time Example:
Customer Satisfaction and Sales: A company might analyze the correlation
between customer satisfaction scores and sales revenue to understand if higher
satisfaction leads to increased sales.
Trend Analysis
Definition: Trend analysis involves examining data over time to iden tify patterns,
trends, or long-term changes. This is particularly useful for time-series data.

Key Concepts:
● Time Series Analysis: Evaluating data points collected or recorded at specific
time intervals.
● Moving Average: A technique to smooth out short-term fluctuations and
highlight long-term trends by averaging data over a specified number of periods.
● Seasonality: Identifying patterns that repeat at regular intervals, such as
quarterly or yearly sales trends.

Real-Time Example:
Stock Market Analysis: Investors analyze stock prices over time using moving
averages to identify trends and make investment decisions.
Segmentation Analysis
Definition: Segmentation analysis involves dividing a dataset into distinct groups
(segments) that share similar characteristics. It is often used in marketing and
customer analytics.

Key Concepts:
Clustering: Grouping data points into clusters based on their similarities (e.g., k-
means clustering).
Market Segmentation: Dividing a customer base into segments based on
demographics, behavior, or preferences.

Real-Time Example:
Customer Segmentation: An e-commerce company uses clustering algorithms to
segment customers based on purchasing behavior, targeting each segment with
personalized marketing strategies.
Anomaly Detection
Definition: Anomaly detection identifies data points that deviate significantly from
the norm. These outliers may indicate errors, fraud, or other unusual events.

Key Concepts:
Z-Score: Measures how many standard deviations a data point is from the mean.
Isolation Forest: A machine learning algorithm designed for anomaly detection in
high-dimensional datasets.

Real-Time Example:
Fraud Detection in Banking: Banks use anomaly detection algorithms to identify
suspicious transactions that may indicate fraudulent activity, such as unusually large
withdrawals or transfers.

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