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Exploratory Data Analysis: Overview, techniques, tools and applications
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In today’s data-driven world, the ability to effectively analyze data is a key factor in the
success of many enterprises. By leveraging data analysis tools and techniques,
businesses can gain insights, identify trends, and confidently make informed decisions
based on their data, improving efficiency and gaining an edge in the highly competitive
business landscape. Exploratory data analysis (EDA), which is a preliminary method
used for interpreting data before undertaking any formal modeling or hypothesis testing,
is one of the most crucial procedures involved in data analysis.
Exploratory Data Analysis is the process of detailing the key features of a dataset,
frequently employing visual techniques. It entails exploring and analyzing data to
comprehend its underlying patterns, connections and trends. EDA is important because
it helps identify any issues or anomalies in the data that could affect the reliability of the
subsequent analysis. Many industries benefit from EDA, including finance, healthcare,
retail, and marketing, since it serves as a foundation for data analysis, pinpoints potential
shortcomings in the data, and provides insightful analysis of customer behavior, market
trends and business performance.
In data analysis, EDA can assist data analysts in identifying missing or incomplete data,
outliers and inconsistencies that can impact the statistical analysis of data. Conducting
an EDA can also help determine which variables are crucial to explaining the outcome
variable and which ones can be excluded. Hence, EDA often serves as the first step in
developing a data model because it provides insights into the characteristics of the data.
In this article, we will explore EDA and its importance, process, tools, techniques and
more.
What is Exploratory Data Analysis (EDA)?
EDA or Exploratory Data Analysis is a method of examining and understanding data using
multiple techniques like visualization, summary statistics and data transformation to
abstract its core characteristics. EDA is done to get a sense of data and discover any
potential problems or issues which need to be addressed and is generally performed
before formal modelling or hypothesis testing. It aims to identify patterns, relationships,
and trends in the data and use this information to facilitate further analysis or decision-
making. Data of different types, including numerical, categorical and text, can be
analyzed using EDA. It is typically done before data analysis to identify and correct the
errors in data and visualize the key attributes of the data.
EDA is a scientific approach to understanding the storing of data. Data scientists can use
it to discover patterns, spot anomalies, test hypotheses, or verify assumptions by
manipulating data sources effectively.
What is the purpose of EDA in data science?
Exploratory data analysis is an important phase in the data science process because it
enables data scientists to comprehend the data they are working with on a deeper level.
Let us find out why EDA is important in data science by defining its objectives:
1. Conducting an EDA can confirm if the collected data is practicable in the context
of the business problem at hand. If not, the data or the strategy adopted by the
data analysts needs to be changed.
2. It can reveal and resolve data quality issues, like duplicates, missing data,
incorrect values and data types and anomalies.
3. Exploratory data analysis plays a vital role in extracting meaningful insights from
data by revealing key statistical measures such as mean, median, and standard
deviation.
4. Oftentimes, some values deviate significantly from the standard set of values;
these are anomalies that must be verified before the data is analyzed. If
unchecked, they can create havoc in the analysis, leading to miscalculations. As
such, one of the objectives of EDA is to locate outliers and anomalies in the data.
5. EDA unveils the behavior of variables when clubbed together, assisting data
scientists in finding patterns, correlations, and interactions between these
variables by visualizing and analyzing the data. This information is helpful in
creating AI models.
6. EDA helps find and drop unwanted columns and derive new variables. It can, thus,
assist in determining which features are most crucial for forecasting the target
variable, assisting in the choice of features to be included in modeling.
 7. Based on the characteristics of the data, EDA can assist in identifying appropriate
modeling techniques.
EDA methods and techniques
Some of the common techniques and methods used in Exploratory Data Analysis include
the following:
Data visualization
Data visualization involves generating visual representations of the data using graphs,
charts, and other graphical techniques. Data visualization enables a quick and easy
understanding of patterns and relationships within data. Visualization techniques
include scatter plots, histograms, heatmaps and box plots.
Correlation analysis
Using correlation analysis, one can analyze the relationships between pairs of variables
to identify any correlations or dependencies between them. Correlation analysis helps in
feature selection and in building predictive models. Common correlation techniques
include Pearson’s correlation coefficient, Spearman’s rank correlation coefficient and
Kendall’s tau correlation coefficient.
Dimensionality reduction
In dimensionality reduction, techniques like principal component analysis (PCA) and
linear discriminant analysis (LDA) are used to decrease the number of variables in the
data while keeping as many details as possible.
Descriptive statistics
It involves calculating summary statistics such as mean, median, mode, standard
deviation and variance to gain insights into the distribution of data. The mean is the
average value of the data set and provides an idea of the central tendency of the data.
The median is the mid-value in a sorted list of values and provides another measure of
central tendency. The mode is the most common value in the data set.
Clustering
Clustering techniques such as K-means clustering, hierarchical clustering, and DBSCAN
clustering help identify patterns and relationships within a dataset by grouping similar
data points together based on their characteristics.
Outlier detection
Outliers are data points that vary or deviate significantly from the rest of the data and can
have a crucial impact on the accuracy of models. Identifying and removing outliers from
data using methods like Z-score, interquartile range (IQR) and box plots method can help
improve the data quality and the models’ accuracy.
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Leverage the power of EDA to uncover patterns, trends, and opportunities in data that
were previously hidden
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The EDA process
Conducting EDA requires expertise in multiple tools and programming languages. In the
example below, we would perform EDA using Python on the open-source web
application, Jupyter Notebook.
The EDA process can be summed up in three steps, which are:
1. Understanding the data
2. Cleaning the data
3. Analysis of the relationship between variables
Let us understand the process of Exploratory Data Analysis (EDA) step-by-step:
Understanding the data
Import necessary libraries
The first step is to import the required libraries. In this code block, the Pandas library is
used to read and manipulate data and the Pandas-profiling library is used for EDA. The
datasets module from the scikit-learn library is used to load the Iris dataset.
import pandas as pd
import pandas_profiling
from sklearn import datasets
Loading the dataset
Next, we have to load the dataset. Here, we will be using the multivariate dataset named
the Iris dataset.
iris = datasets.load_iris()
Converting to Pandas DataFrame
The scikit-learn dataset is loaded as a Bunch object, similar to a dictionary. To use this
dataset with Pandas, we must convert it to a Pandas DataFrame.
iris_data = pd.DataFrame(iris.data, columns=iris.feature_names)
iris_data['target'] = iris['target']
Checking data attributes
It is always a good approach to check the attributes of the data, like its shape or the
number of rows and columns in the dataset. To check the shape of the data, run the
following code:
iris_data.shape
To check the column names of the DataFrame, we use the columns attribute.
iris_data.columns
If your dataset is big, you can view the first few records of the DataFrame by running the
below code:
iris_data.head()
Cleaning the data
Once you are done with scanning the attributes of the data, you can make any necessary
modifications in the dataset, like changing the name of the columns or the raws.
Remember not to change the dataset’s variables, which can significantly impact the final
result.
Check for null values
To clean the data, first, you must check for any null values in the variables. If any of the
variables in a dataset have null values, it can affect the analysis results. If your dataset
has missing data, handle them through approaches like imputation, deletion of
observations or variables, or using models that can handle missing data.
Dropping the redundant data and removing outliers
Next, if you find any redundant data in your dataset that does not add value to the output,
you can also remove them from the table. All the columns and rows are important in the
iris dataset we have taken. So we would not be dropping the data. In this step, we must
also find any outliers in the data.
Analysis of the relationship between variables
The final step in the process of EDA is to analyze the relationship between variables. It
involves the following:
• Correlation analysis: The analyst computes the correlation matrix between
variables to identify which variables are strongly correlated with each other.
• Visualization: The data analyst creates visualizations to explore the relationship
between variables. This includes scatter plots, heatmaps, etc.
• Hypothesis testing: The analyst performs statistical tests to test hypotheses
about the relationship between variables.
Run the following code to generate a report that includes various relationship analyses
between variables.
pandas_profiling.ProfileReport(iris_data)
You can view the output of the above code from this Github repository.
Types of EDA techniques
Several types of exploratory data analysis techniques can be used to gain insights into
data. Some common types of EDA include:
Univariate non-graphical
Univariate non-graphical exploratory data analysis is a simple yet fundamental method
for examining information that includes utilizing only one variable to analyze the data.
Univariate non-graphical EDA focuses on figuring out the underlying distribution or
pattern in the data and mentions objective facts about the population. This procedure
includes the examination of the attributes of the population distribution, including
spread, central tendency, skewness and kurtosis.
• An average or middle value of a distribution is called the central tendency. A
common measure of central tendency is the mean, followed by the median and
mode. As a measure of central tendency, the median may be preferred if the
distribution is skewed or concerns are raised about outliers.
• Spread shows how far off the information values are from the central tendency.
The standard deviation and variance are two valuable proportions of the spread.
The variance is the mean of the square of the individual deviations, and the
standard deviation is the foundation of the variance.
• Skewness and kurtosis are two more helpful univariate descriptors of the
distribution. Skewness is a metric of the asymmetry of the distribution, while
kurtosis is a proportion of the peakedness of the distribution contrasted with an
ordinary dispersion.
Outlier detection is also important in univariate non-graphical EDA, as outliers can
significantly impact the distribution and distort statistical analysis results.
Multivariate non-graphical
Multivariate non-graphical EDA is a technique used to explore the relationship between
two or more variables through cross-tabulation or statistics. It is useful for identifying
patterns and relationships between variables. This analysis is particularly useful when
multiple variables exist in a dataset, and you want to see how they relate.
Cross-tabulation is a helpful extension of tabulation for categorical data. Cross-
tabulation is preferable when there are two variables involved. To do this, create a two-
way table with column headings corresponding to the number of one variable and row
headings corresponding to the number of the other two variables. Next, fill the counts
with all subjects with the same pair of levels.
We produce statistics for quantitative variables individually for each level of each
categorical variable and one quantitative variable, and then we compare the statistics
across all categorical variables. The purpose of multivariate non-graphical EDA is to
identify relationships between variables and understand how they are related. Examining
the relationship between variables makes it possible to discover patterns and trends that
may not be immediately obvious from examining individual variables in isolation.
Univariate graphical
A univariate graphical EDA technique employs a variety of graphs to gain insight into a
single variable’s distribution. These graphical techniques enable us to gain a quick
understanding of shapes, central tendencies, spreads, modalities, skewnesses, and
outliers of the data we are studying. The following are some of the most commonly used
univariate graphical EDA techniques:
1. Histogram: This is one of the most basic graphs used in EDA. A histogram is a bar
plot that displays the frequency or proportion of cases in each of several intervals
(bins) of a variable’s values. The height of each bar represents the count or
proportion of observations that fall within each interval. Histograms provide an
intuitive sense of the shape and spread of the distribution, as well as any outliers.
2. Stem-and-leaf plots: A stem-and-leaf plot is an alternative to a histogram that
displays each data value along with its magnitude. In a stem-and-leaf plot, each
data value is split into a stem and leaf, with the stem representing the leading
digits and the leaf representing the trailing digits. This type of plot provides a visual
representation of the data’s distribution and can highlight features such as
symmetry and skewness.
3. Boxplots: Boxplots, also known as box-and-whisker plots, provide a visual
summary of the distribution’s central tendency, spread and outliers. The box in a
boxplot represents the data’s interquartile range (IQR), with the median line inside
the box. The whiskers extend from the box to the smallest and largest observations
within 1.5 times the IQR from the box. Data points outside of the whiskers are
considered outliers.
4. Quantile-normal plots: A quantile-normal plot, also known as a Q-Q plot,
assesses the data distribution by comparing the observed values to the expected
values from a normal distribution. In a Q-Q plot, the observed data is plotted
against the quantiles of a normal distribution. The points should lie along a
straight line if the data is normally distributed. If the data deviates from normality,
the plot will reveal any skewness, kurtosis, or outliers.
Multivariate graphical
A multivariate graphical EDA displays relationships between two or more data sets using
graphics. When examining relationships between variables beyond two, this technique is
used to gain a more comprehensive understanding of the data. A grouped barplot is one
of the most commonly used multivariate graphical techniques, with each group
representing one level of one variable and each bar representing its amount.
Multivariate graphics can also be represented in scatterplots, run charts, heat maps,
multivariate charts, and bubble charts.
• Scatterplots are graphical representations displaying the relationship between
two quantitative/numerical variables. It consists of plotting one variable on the x-
axis and another on the y-axis. On the plot, each point represents an observation.
Scatterplots make it possible to identify outliers or patterns in the data and the
direction and strength of the relationship between any two variables.
• A run chart is a line graph that shows how data changes over time. It is a simple
but powerful tool for tracking changes and monitoring trends in data. Run charts
can be used to detect trends, cycles, or shifts in a process over time.
• A multivariate chart illustrates the relationship between factors and responses.
It is a type of scatterplot that depicts relationships between several variables
simultaneously. A multivariate chart depicts the relationship between variables
and identifies patterns or clusters in the data.
• Bubble chart is a data visualization that displays multiple circles (bubbles) in a
two-dimensional plot. The size of each circle represents a value of a third variable.
Bubble charts are often used to compare data sets with three variables, as they
provide an easy way to visualize the relationships between these variables.
Visualization techniques in EDA
Visualization techniques play an essential role in EDA, enabling us to explore and
understand complex data structures and relationships visually. Some common
visualization techniques used in EDA are:
1. Histograms: Histograms are graphical representations that show the distribution
of numerical variables. They help understand the central tendency and spread of
the data by visualizing the frequency distribution.
2. Boxplots: A boxplot is a graph showing the distribution of a numerical variable.
This visualization technique helps identify any outliers and understand the spread
of the data by visualizing its quartiles.
3. Heatmaps: They are graphical representations of data in which colors represent
values. They are often used to display complex data sets, providing a quick and
easy way to visualize patterns and trends in large amounts of data.
4. Bar charts: A bar chart is a graph that shows the distribution of a categorical
variable. It is used to visualize the frequency distribution of the data, which helps
to understand the relative frequency of each category.
 5. Line charts: A line chart is a graph that shows the trend of a numerical variable
over time. It is used to visualize the changes in the data over time and to identify
any patterns or trends.
6. Pie charts: Pie charts are a graph that showcases the proportion of a categorical
variable. It is used to visualize each category’s relative proportion and understand
the data distribution.
Contact LeewayHertz's data analytics experts today!
Leverage the power of EDA to uncover patterns, trends, and opportunities in data that
were previously hidden
Learn More
Exploratory data analysis tools
Spreadsheet software
Due to its simplicity, familiar interface and basic statistical analysis capabilities,
spreadsheet software such as Microsoft Excel, Google Sheets, or LibreOffice Calc is
commonly used for EDA. Using them, users can sort, filter, manipulate data and perform
basic statistical analysis, like calculating the mean, median and standard deviation.
Statistical software
Specialized statistical software such as R or Python and their various libraries and
packages offer more advanced statistical analysis tools, including regression analysis,
hypothesis testing, and time series analysis. This software allows users to write
customized functions and perform complex statistical analyses on large datasets.
Data visualization software
Visualization software like Tableau, Power BI, or QlikView enables users to create
interactive and dynamic data visualizations. These tools help users to identify patterns
and relationships in the data, allowing for more informed decision-making. They also
offer various types of charts and graphs, as well as the ability to create dashboards and
reports. The software allows data to be easily shared and published, making it useful for
collaborative projects or presentations.
Programming languages
Programming languages such as R, Python, Julia and MATLAB offer powerful numerical
computing capabilities and provide access to various statistical analysis tools. These
languages can be used to write customized functions for specific analysis needs and are
particularly useful when working with large datasets. They also enable the automation of
repetitive tasks, besides bringing flexibility in data handling and manipulation.
Business Intelligence (BI) tools
BI tools like SAP BusinessObjects, IBM Cognos or Oracle BI offer a range of
functionalities, including data exploration, dashboards and reports. They allow users to
visualize and analyze data from various sources, including databases and spreadsheets.
They provide data preparation tools and quality management tools that can be used in
business settings to help organizations make data-driven decisions.
Data mining tools
Data mining tools such as KNIME, RapidMiner or Weka provide a range of functionalities,
including data preprocessing, clustering, classification and association rule mining.
These tools are particularly useful for identifying patterns and relationships in large
datasets and building predictive models. Data mining tools are used in various industries,
including finance, healthcare and retail.
Cloud-based tools
Cloud-based platforms such as Google Cloud, Amazon Web Services (AWS) and
Microsoft Azure offer a range of tools and services for data analysis. They provide a
scalable and flexible infrastructure for storing and processing data and offer a range of
data analysis and visualization tools. Cloud-based tools are particularly useful for
working with large and complex datasets, as they offer high-performance computing
resources and the ability to scale up or down depending on the project’s needs.
Text analytics tools
Text analytics tools like RapidMiner and SAS Text Analytics are used to analyze
unstructured data, such as text documents or social media posts. They use natural
language processing (NLP) techniques to extract insights from text data, such
as sentiment analysis, entity recognition and topic modeling. Text analytics tools are
used in a range of industries, including marketing, customer service and political
analysis.
Geographic Information System (GIS) tools
GIS tools such as ArcGIS and QGIS are used to analyze and visualize geospatial data.
They allow users to map data and perform spatial analysis, such as identifying patterns
and trends in geographical data or performing spatial queries. GIS tools are used in a
range of industries, including urban planning, environmental management and
transportation.
Applications of EDA
Some of the common applications of EDA include:
Data preprocessing and cleaning
Exploratory Data Analysis plays a critical role in data preprocessing and cleaning. During
this phase, data analysts identify and address issues such as missing data, outliers, and
anomalies. By visualizing data distributions and using summary statistics, analysts can
pinpoint data points that require attention. For missing data, EDA offers clarity on
whether it’s essential to fill in or estimate missing values, if so, how best to do it.
Additionally, EDA helps in standardizing and normalizing features to ensure consistency
across the dataset, making it ready for further analysis.
Feature selection and engineering
EDA aids in feature selection and engineering, a crucial step in building predictive
models. Analysts use EDA to identify relevant features that are likely to have a significant
impact on the target variable. By visualizing relationships between features and the target
variable, they can make informed decisions about which features to include in the model.
EDA also guides feature engineering efforts, helping analysts create new features or apply
transformations that improve the model’s predictive power.
Detecting data patterns and trends
EDA is instrumental in uncovering patterns, trends, and relationships within datasets.
Through data visualization techniques like scatter plots, line charts, and
histograms, analysts can visually assess how variables interact with one another. EDA is
particularly valuable for time-series data, where it can reveal seasonal patterns, trends,
and cyclical behaviors. Identifying these patterns can lead to deeper insights and guide
decision-making.
Hypothesis generation
EDA serves as a foundation for hypothesis generation. Analysts explore the data and
formulate hypotheses about potential relationships between variables. These
hypotheses help guide further analysis and experimentation. By conducting initial
exploratory analysis, analysts can prioritize which hypotheses to test rigorously, saving
time and resources.
Identifying data distribution and skewness
Understanding the distribution of data is a key aspect of EDA. Analysts use EDA
techniques to determine the shape and characteristics of data distributions. They assess
whether data follows a normal distribution and identify any skewness or non-normality.
This information is vital for choosing appropriate statistical tests and modeling
techniques.
Understanding data quality and reliability
EDA is employed to assess data quality and reliability. Analysts examine the sources of
data, assess data entry errors, and identify inconsistencies. By visualizing data and
conducting summary statistics, they gain insights into the credibility and reliability of the
data. This step is critical for ensuring that the analysis is based on trustworthy
information.
Exploring group comparisons
EDA is valuable for comparing different groups within a dataset. Analysts can use EDA to
compare demographic groups, experimental conditions, or any other relevant
categories. By conducting statistical tests and visualizing group differences, analysts can
identify significant variations and draw insights about group behaviors.
Customer behavior analysis
In marketing, EDA is applied to analyze customer behavior. Analysts examine data related
to purchase behavior, click-through rates, conversion rates, and more. Through EDA, they
can segment customers based on buying habits or demographics, gaining a deeper
understanding of customer preferences and behavior, which informs marketing
strategies.
Financial data analysis
EDA is crucial in financial data analysis, where it is used to examine financial indicators
and identify patterns such as seasonal trends, cyclic behaviors, demand
fluctuations, market responses, and anomalies. Analysts visualize financial time series
data to detect trends, patterns, and correlations. These insights are vital for making
informed investment decisions and managing portfolios effectively.
Healthcare and medical research
In healthcare and medical research, EDA is applied to analyze patient health records.
Analysts use EDA to identify potential disease risk factors, investigate the effectiveness
of treatments, and gain insights into patient outcomes. This helps healthcare
professionals make informed decisions and improve patient care.
Predictive modeling
EDA plays a foundational role in predictive modeling. Analysts prepare data for machine
learning models by selecting relevant features, transforming data, and identifying
potential issues. EDA helps improve model performance by ensuring that the data used
for training and evaluation is of high quality and relevant to the task.
Quality control and manufacturing
EDA is used in quality control and manufacturing to monitor production processes and
identify defects. Analysts analyze data related to product quality, manufacturing
parameters, and sensor readings. By visualizing data and detecting anomalies, they can
take corrective actions and optimize manufacturing processes.
Environmental data analysis
EDA is applied to environmental data to analyze climate patterns, detect trends, and
assess the impact of environmental factors on ecosystems. By visualizing data related to
temperature, precipitation, air quality, and other environmental variables, analysts can
inform conservation efforts and policy decisions.
Social sciences and survey analysis
Social scientists and survey researchers use EDA to analyze survey responses and
understand public opinions and behaviors. EDA helps identify trends in survey data,
segment respondents based on demographics, and draw insights about societal
attitudes and trends.
Retail and inventory management
In the retail industry, EDA is used to analyze sales data, optimize inventory levels, and
improve supply chain management. Analysts visualize sales trends, identify product
preferences, and make data-driven decisions to ensure that products are stocked
efficiently.
Energy and utilities
EDA is applied to energy consumption data to optimize resource allocation and predict
equipment failures. Analysts examine patterns in energy usage, detect anomalies, and
use predictive maintenance techniques to ensure the reliability of energy infrastructure.
Sports analytics
In sports analytics, EDA is used to analyze player performance statistics, identify team
strategies, and assess player strengths and weaknesses. By visualizing player data,
analysts provide valuable insights to coaches and team management.
Endnote
Exploratory data analysis, or EDA, is an essential step that must be conducted before
moving forward with data analysis. It helps data scientists and analysts to understand
and gain insights into the data they are working on. It helps discover missing or wrong
data that may lead to bias or fault in the final analysis. Analysts can guarantee that the
data used for analysis is accurate and reliable by cleaning and preprocessing the data
during the EDA process. EDA methods can also facilitate feature selection, identifying the
vital features to be included in machine learning models and improving model
performance. Overall, EDA allows for detecting anomalies, patterns and relationships
within the data, which can help businesses make informed decisions and acquire a
competitive edge in the fast-evolving tech sphere.
Take data analysis to the next level! Contact our Data Scientists and Data Analysts to
perform a comprehensive Exploratory Data Analysis (EDA) and unlock valuable insights
from your data.
Author’s Bio

Akash Takyar
CEO LeewayHertz
Akash Takyar is the founder and CEO of LeewayHertz. With a proven track record of
conceptualizing and architecting 100+ user-centric and scalable solutions for startups
and enterprises, he brings a deep understanding of both technical and user experience
aspects.
Akash's ability to build enterprise-grade technology solutions has garnered the trust of
over 30 Fortune 500 companies, including Siemens, 3M, P&G, and Hershey's. Akash is an
early adopter of new technology, a passionate technology enthusiast, and an investor in
AI and IoT startups.
Write to Akash
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