DATA ANALYSIS
Data Analysis Methods
There are two main methods of Data Analysis:
1. Qualitative Analysis
This approach mainly answers questions such as ‘why,’ ‘what’ or ‘how.’ Each of these questions
is addressed via quantitative techniques such as questionnaires, attitude scaling, standard
outcomes, and more. Such kind of analysis is usually in the form of texts and narratives, which
might also include audio and video representations.
2. Quantitative Analysis
Generally, this analysis is measured in terms of numbers. The data here present themselves in
terms of measurement scales and extend themselves for more statistical manipulation.
The other techniques include:
3. Text analysis
Text analysis is a technique to analyze texts to extract machine-readable facts. It aims to create
structured data out of free and unstructured content. The process consists of slicing and dicing
heaps of unstructured, heterogeneous files into easy-to-read, manage and interpret data pieces. It
is also known as text mining, text analytics, and information extraction.
4. Statistical analysis
Statistics involves data collection, interpretation, and validation. Statistical analysis is the
technique of performing several statistical operations to quantify the data and apply statistical
analysis. Quantitative data involves descriptive data like surveys and observational data. It is also
called a descriptive analysis. It includes various tools to perform statistical data analysis such as
SAS (Statistical Analysis System), Stat soft, and more.
5. Predictive analysis
Predictive analysis uses historical data and feds it into the machine learning model to find critical
patterns and trends. The model is applied to the current data to predict what would happen next.
Many organizations prefer it because of its various advantages like volume and type of data,
faster and cheaper computers, easy-to-use software, tighter economic conditions, and a need for
competitive differentiation.
Data Analysis Process
Once i set out to collect data for analysis, I am are overwhelmed by the amount of information
that i find to make a clear, concise decision. With so much data to handle, i need to identify
relevant data for my analysis to derive an accurate conclusion and make informed decisions. The
following simple steps help i identify and sort out my data for analysis.
1. Data Requirement Specification - define your scope:
o Define short and straightforward questions, the answers to which i finally need to
make a decision.
o Define measurement parameters
o Define which parameter i take into account and which one i am willing to
negotiate.
o Define my unit of measurement. Ex – Time, Currency, Salary, and more.
2. Data Collection
o Gather my data based on my measurement parameters.
o Collect data from databases, websites, and many other sources. This data may not
be structured or uniform, which takes us to the next step.
3. Data Processing
o Organize my data and make sure to add side notes, if any.
o Cross-check data with reliable sources.
o Convert the data as per the scale of measurement i have defined earlier.
o Exclude irrelevant data.
4. Data Analysis
o Once i have collected my data, perform sorting, plotting, and identifying
correlations.
o As i manipulate and organize my data, i may need to traverse my steps again from
the beginning, where i may need to modify my question, redefine parameters, and
reorganize my data.
o Make use of the different tools available for data analysis.
5. Infer and Interpret Results
o Review if the result answers my initial questions
o Review if i have considered all parameters for making the decision
o Review if there is any hindering factor for implementing the decision.
o Choose data visualization techniques to communicate the message better. These
visualization techniques may be charts, graphs, color coding, and more.
Data Analysis Techniques
There are different techniques for Data Analysis depending upon the question at hand, the
type of data, and the amount of data gathered. Each focuses on strategies of taking onto
the new data, mining insights, and drilling down into the information to transform facts
and figures into decision making parameters. Accordingly, the different techniques of
data analysis can be categorized as follows:
1. Techniques based on Mathematics and Statistics
Descriptive Analysis: Descriptive Analysis takes into account the historical data, Key
Performance Indicators, and describes the performance based on a chosen benchmark. It
takes into account past trends and how they might influence future performance.
Dispersion Analysis: Dispersion in the area onto which a data set is spread. This
technique allows data analysts to determine the variability of the factors under study.
2. Techniques based on Visualization and Graphs
Column Chart, Bar Chart: Both these charts are used to present numerical differences
between categories. The column chart takes to the height of the columns to reflect the
differences. Axes interchange in the case of the bar chart.
Line Chart: This chart is used to represent the change of data over a continuous interval
of time.
Area Chart: This concept is based on the line chart. It additionally fills the area between
the polyline and the axis with color, thus representing better trend information.
Pie Chart: It is used to represent the proportion of different classifications. It is only
suitable for only one series of data. However, it can be made multi-layered to represent
the proportion of data in different categories.
Data Analysis Tools
There are several data analysis tools available in the market, each with its own set of functions.
The selection of tools should always be based on the type of analysis performed, and the type of
data worked. Here is a list of a few compelling tools for Data Analysis.
1. Excel
It has a variety of compelling features, and with additional plugins installed, it can handle a
massive amount of data. So, if you have data that does not come near the significant data margin,
then Excel can be a very versatile tool for data analysis.
2. Tableau
It falls under the BI Tool category, made for the sole purpose of data analysis. The essence of
Tableau is the Pivot Table and Pivot Chart and works towards representing data in the most user-
friendly way. It additionally has a data cleaning feature along with brilliant analytical functions.
