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Data Science
Module-I
I. Data
Data is a distinct piece of information that is gathered and translated for some
purpose. There are different kinds of data, some of them as follows:

• Sound
• Video
• Single character
• Number (integer or floating-point)
• Picture
• Boolean (true or false)
• Text (string)

Types of Data
• Structured data
• Unstructured data
• Semi-structured data

1. Structured Data
• The data which is highly organized is referred to as structured data.
• It is quantitative in nature, i.e., it is related to quantities that means it
contains measurable numerical values like numbers, dates, and times.
• Relational databases (RDBMS) are used to store Structured data.
• All the data that can be stored in a SQL database in a table having some
rows and columns depict the structured data.
• This data is easy to search, retrieve, and analyse because of its defined
schema.

Examples:

• Customer records in a CRM (e.g., Name, Age, Email).

• Financial transactions (e.g., Account ID, Amount, Date).
• Sensor readings in a table format (e.g., Timestamp, Temperature,
Humidity).

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2. Unstructured Data
• Doesn’t have a fixed format or structure that makes it difficult to organize
and analyse.
• It is not suitable to store in the relational database.
• Unstructured Data can be either textual or non-textual data.
• It's a vast and growing source of information.
• Analysing unstructured data requires specialized techniques.

Examples:

• Text: Word files, PDFs, emails, and reports.

• Media Files: Images, videos, and audio recordings.
• Sensor Data: IoT devices generating data.

3. Semi-Structured data.
• It is a combination of structured and unstructured data.
• It is not as organized as the structured data but still has a better organization
than the unstructured data.
• We cannot store it directly to relational database directly, but can store after
performing some operations.
• Easier to analysis than unstructured data.

Examples

• XML, JSON data are examples of semi-structured data.

JSON Data
{
"product": "Laptop",
"price": 42000,
"specs": {
"processor": "Intel i7",
"ram": "16GB"
}

• XML Data
<product>
<name>Laptop</name>
<price>42000</price>
<specs>
<processor>Intel i7</processor>
<ram>16GB</ram>
</specs>
</product>

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4. Data Streams.
• Data streaming refers to the continuous flow of data that is generated and
transmitted in real-time.
• The data is processed with minimal delay to provide real-time results.
• Data is analysed, transformed, or used for decision-making immediately or
with very little latency.
• This is crucial for applications that require timely responses.
• Data can be structured or unstructured but the focus is on real-time
transmission.

Examples

• Live Video and Audio Streaming.

• IoT Sensor Data.
• Healthcare Monitoring.
• Stock Market Data.

Data Types in Statistics

• There are different types of data available in statistics.
• Analysing these data for getting various information.
• Categorizing data into different types is very important to get information.
• Data types in statistics help us to make a decision about what type of
process is used to analyse the data.

There are two primary classifications of data types in statistics.

1. Qualitative Data (Categorical Data)

2. Quantitative Data (Numerical Data)

1. Qualitative Data(Categorical Data).

• This type of data describes the features of data.
• It cannot be measured numerically.
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• Qualitative Data is also called Categorical Data.
• It categorizes the data into various categories.
Examples: Gender, colours , types of pets, Dress items, Education levels,
etc.

Qualitative Data (Categorical Data) is further categorized into two categories.

1. Nominal Data.
2. Ordinal Data.

1.1. Nominal Data.

• This type of data consists of categories.
• Used to categorize data into groups
• Data cannot be ordered or ranked.
• Frequency or the percentage of the data can be calculated.
• Nominal data can be represented using frequency tables and bar charts.
Examples: Gender (male, female), colours (red, blue, green), types of pets
(dog, cat, bird), Dress Items(Shirts, Pants, etc)

1.2.Ordinal Data.
• This type of data consists of categories.
• Data can be ordered or ranked.
• Intervals between categories are not uniform.
• Ordinal data can be represented using bar charts, line charts.
Examples: Education levels (high school, bachelor's, master's), satisfaction
ratings (poor, fair, good, excellent).

2. Quantitative Data(Numerical Data)

•This type of the data represents the numerical value of the data.
• It can be measured numerically.
Examples: height, length, size, weight, and so on.

Quantitative data is further classified into two categories that are,

1. Discrete Data.
2. Continuous Data.

2.1. Discrete Data.

• This type of data consists of only countable value or single value.
• These data types have values that can be easily counted as whole numbers.
Examples: Number of children in a family, Number of students scored full A+,
Number of customer complaints.

2.2. Continuous Data.

• This data represents measurable values that can take any value within a
range, including fractions or decimals.
Examples: Height, weight, etc

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Differences Between Qualitative and Quantitative Data.

Level of Measurements.
• In statistics, the level of measurement is a way to categorize data based on
how precisely their values are recorded.
• Data may be qualitative or quantitative.

The four levels of measurement are:

1. Nominal Scale.
2. Ordinal Scale.
3. Interval Scale.
4. Ratio Scale.

First two measurements(Nominal and Ordinal) we already discussed in

qualitative data.

3. Interval Scale.
• Interval scales are numerical scale that have order and exact difference
between the data.
• It allows to compare the distance between the data.
• An interval scale measures variables with equal intervals between values.
• Interval scales hold no true zero and can represent values below zero.
• This scale lacks a true zero point.

Example: We can measure temperatures below 0 degrees Celsius, such as -10

degrees.

4. Ratio Scale.
• It is the ideal scale.
• It possesses the characteristics of nominal, ordinal & interval scales.
• The ratio scale is a quantitative measurement scale with a true zero point.
• Never fall below zero.
• It allows for meaningful comparisons of magnitude.

Examples: Weight, Height, Time, etc.

II. Data Analysis.

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• Processing of data to discover useful information is called data analysis.
• The purpose of Data Analysis is to extract useful information from data
and taking the decision based upon the data analysis.
• It helps in business to make decisions and solve problems.

Basic Methods of Data Analysis are

1. Descriptive Data Analysis.

2. Diagnostic Data Analysis.
3. Predictive Analysis.
4. Prescriptive Analytics

1. Descriptive Data Analysis.

•The first type of data analysis is descriptive analysis.

• It is at the foundation of all data insight.
•It is a way to summarize and describe the main features of a dataset.
•It is the simplest and most common use of data in business today.
•Descriptive analysis answers “what happened” or "what is happening" by
summarizing past data.
Example:
Analysis: Sales decreased in the last quarter.

2. Diagnostic Data Analysis.

• It is a deeper type of analysis that focuses on understanding why something
happened.
• Diagnostic analysis takes the insights found from descriptive analytics and
drills down to find the causes of those outcomes.

Example:
Sales decreased in the last quarter.
Analysis: Similar product at a lower price.

3. Predictive Analysis.
• Predictive analysis attempts to answer the question “what is likely to
happen”.

• This type of analytics utilizes past data to make predictions about future
outcomes.
• It uses machine learning algorithms, and data patterns to make predictions
about what is likely to happen.

Example:

By analysing sales in the last quarter, store predicts it will sell 20% less
products than last quarter.

4. Prescriptive Analysis.

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• It is the process of determining the best action in the given situation.
• It combines insight from all previous analyses to determine the course of
action to take in a current problem or decision.
• It provides recommendations to achieve desired outcomes.
Example:
Reduce the price of product and number of labours through overtime to
achieve the desired outcome.

III. Inferential Statistics.

Population
• It is the entire set of items from which we draw data for a statistical study.
It can be a group of individuals, a set of items, etc.
• It makes up the data pool for a study. It has some parameters such as the
mean, median, mode, standard deviation, etc.
Example:
• All students in a university.
• All manufactured products in a factory.

Sample
• A subset of the population selected for study to make inferences about the
population.
• Smaller and more manageable than the population.
• Should be representative of the entire population to ensure reliable results.
Example:
• A group of 200 students randomly selected from a university.
• 100 products inspected from entire product.

Different Types of Sampling Techniques

1. Simple Random Sampling
• Every member of the population has an equal chance of being selected.
• Our sampling frame should include the whole population.
• The selection of one individual does not affect the selection of another.

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2. Systematic Sampling
In this type of sampling, the first individual is selected randomly and others are
selected using a fixed interval.
Selection is made at fixed intervals, called the sampling interval.

Suppose, we began with person number 3, and we want a sample size of 5. So,
the next individual that we will select would be at an interval of (20/5) = 4 from
the 3rd person, i.e. 7 (3+4), and so on.
3, 3+4=7, 7+4=11, 11+4=15, 15+4=19 =3, 7, 11, 15, 19
3. Stratified Sampling
• Subsets of the data sets or population are created based on a common
factor(e.g. gender, age range, income, job, etc), and samples are randomly
collected from each subgroup.

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4. Cluster Sampling
• In a clustered sample, we use the subgroups of the population as the
sampling unit rather than individuals.
• The population is divided into subgroups, known as clusters, and a whole
cluster is randomly selected to be included in the study:

Statistical inference:
• It refers to the process of using data from a sample to draw conclusions or
make generalizations about a larger population.
• It allows to infer trends, relationships within data, etc about a larger
population based on a study of a sample taken from it.
Examples:
• Predicting Election Outcomes.
• Quality Control in Manufacturing products.
• Testing a new drug.

Model
• A model of an object is a physical representation that shows what it looks
like or how it works.
• The model is often smaller than the object it represents.
• A model is a system that is being used and that people might want to copy
in order to achieve similar results.
Examples: Blueprint for a building, doll represents a child, model of aeroplane
represents aircraft, etc.
Statistical Modeling
• A statistical model is a mathematical framework used to describe
relationships between variables and to make predictions or inferences
based on data.

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• Statistical models can take many forms, from simple linear regression
models to complex machine learning algorithms. The choice of model
depends on the nature of the data and the research question at hand.

• In data science, statistical models are essential tools for understanding and
analysing data. They are used to create models that can predict outcomes,
identify patterns and trends, and estimate the likelihood of future events.

Some common examples of statistical models include:

• Linear regression models, which are used to model the relationship

between a dependent variable and one or more independent variables.

• Logistic regression models, which are used to model the probability of a

binary outcome (e.g., yes/no, success/failure) based on one or more
predictor variables.
• Time series models, which are used to model trends and patterns in data
over time.

Probability
• It denotes the possibility of something happening.
• It is a mathematical concept that predicts how likely events are to occur.
• The probability values are expressed between 0 and 1.
• Higher probabilities indicate a greater chance of the event happening.
• It is mainly a ratio between the given event and the total number of events
• Total Probability is 1.

Probability PE= Favourable Cases / Total number of cases.

Eg:
1. Find the probability of getting one head while throwing two coins
simultaneously.

Sample Space={TT, TH, HT. HH}

Total number of cases=4
Favourable cases(getting one head)={TH,HT}
Number of favourable cases=2

Probability=2/4=1/2

Probability distribution
• Probability distribution is a statistical function that describes all the
possible values and probabilities for a random variable within a given
range.
• It shows how probabilities are distributed over possible values of a random
variable.

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Example:
Let X be the random variable representing the number of heads while throwing
two coins simultaneously.
Sample Space={TT, TH, HT. HH}
Probability Distribution is
X 0 1 2
P(X) 1/4 1/4+1/4=2/4=1/2 1/4

Major Probability Distributions used in data science are

1. Binomial Distribution

It is a discrete probability distribution that return the probability of achieving

exactly x successes in n independent trials of a binary experiment, where each
trial has a fixed probability of success, p, and a fixed probability of failure,
1−p.The binomial distribution formula is for any random variable X, given by

P(x) = nCx px (1-p)n-x

n = the number of experiments

x = 0, 1, 2, 3, 4, …
p = Probability of Success in a single experiment

Conditions of the Binomial Distribution

1. It is made of independent trials.

2. Each trial can be classified as either success or failure, where the
probability of success is p while the probability of failure is 1-p.
3. It has a fixed number of trials (n).
4. The probability of success in each trial is constant.

Application of Binomial Distributions

1. Medical professionals use the binomial distribution to model the probability

that a certain number of patients will experience side effects as a result of
taking new medications.

Example
Suppose it is known that 5% of adults who take a certain medication experience
negative side effects. find the probability that 5 patients in a random sample of
100 will experience negative side effects.
Here n=100, x=5, p=0.05, q=0.95

P(x=5) = 100C5 (0.05)5 (0.95)95

The probability that exactly 5 patients out of 100 will experience negative side
effects is 0.1800 or 18.00%.

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2. Probability of scoring centuries in a specified number of matches.

The probability that a batsman scores century in cricket match is 1/5. Then
find the probability of scoring two centuries in upcoming 5 matches.
Here n=5, x=2, p=0.2, q=0.8

P(x=2) = 5C2 (0.2)2 (0.8)3

The probability of scoring exactly two centuries in the upcoming 5 matches is
0.2048 or 20.48%.

3. Probability of finding the number of defective items (0, 1, 2, 3…30) while

examining 30 items.

Here, the random variable X is the number of “successes” that is the number of
times defective item is found out. The probability of finding a defective item is
p. Binomial distribution could be represented as B(30,p)

4. Banks use the binomial distribution to model the probability that a certain
number of credit card transactions are fraudulent.

For example, suppose it is known that 2% of all credit card transactions in a

certain region are fraudulent. If there are 50 transactions per day in a certain
region, we can use a Binomial Distribution Calculator to find the probability that
more than a certain number of fraudulent transactions occur in a given day.

2. Poisson Distribution
• It is a discrete probability distribution.
• It gives the probability of an event happening a certain number of times (k)
within a given interval of time.
• The Poisson distribution has only one parameter, λ (lambda), which is the
mean number of events.
The probability of happening k events in a fixed interval is given by:

• P(X=k): Probability of k events occurring.

• λ: Average number of events in the interval.
• k: Number of events (k=0,1,2,…k = 0, 1, 2, …).
• e: The base of the natural logarithm (e≈2.718).
Example:
1. A customer service centre receives an average of 5 calls per hour. What is
the probability that exactly 3 calls are received in an hour?
Here λ=5 and k=3
Then
P(X=3) = e-5*53 / 3!

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The probability of receiving exactly 3 calls in an hour is 0.1404 or 14.04%.
2. A traffic intersection experiences an average of 3 accidents per week. What
is the probability that exactly 5 accidents will occur at the intersection in a
given week?
Here λ=3 and k=5
Then
P(X=5) = e-3*35 / 3!
The probability of exactly 5 accidents occurring at the intersection in a
week is 0.10090 or 10.09%.
Applications of the Poisson Distribution:
1. Business professionals use Poisson distributions to forecasts the sales of
products on certain days or seasons of the year.
In business, overstocking will sometimes mean losses if the products aren’t
sold. Similarly, understocking causes the loss of business opportunities
because we are not able to maximize our sales. By using this distribution,
business owners can predict when the demand is high so they can buy more
stock.
2. The number of visitors visiting a website per hour can range from zero to
infinity. Since the event can occur within a range that extends until infinity, the
Poisson probability distribution is most suited to calculate the probability of
occurrence of certain events.

3. The concept of Poisson’s distribution is highly used by the call centres to

compute the number of employees required to be hired for a particular job.

3. Normal Distribution.
• Normal distribution is the continuous probability distribution function.
• Gaussian distribution (normal distribution) is famous for its bell-like shape,
and it’s one of the most commonly used distributions in data science.

• The normal distribution is symmetric around its mean. This means the left
side of the distribution mirrors the right side.
• Mean, median, and mode are all equal and located at the centre of the
distribution.
• Most occurrences take place near the mean (average) and fewer occur as
you move further away from it.
Applications of Normal Distribution
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1. Average academic performance of students follows the normal distribution
curve. The number of average intelligent students is higher than most other
students.
2. Quality control: Many manufacturing processes follow a normal
distribution and companies can use statistical process control techniques to
monitor the quality of their products. By measuring the mean and standard
deviation of the process, companies can set control limits to ensure that the
process stays within acceptable bounds.

3. Customer behaviour analysis: Companies can use the normal distribution

to model customer behaviour, such as the amount of time spent on a
website or the number of purchases made in a given period. By
understanding the distribution of customer behaviour, companies can
optimize their marketing and sales strategies.

4. Most parents, as well as children, want to analyse the Intelligent Quotient

level. Well, the IQ of a particular population is a normal distribution curve;
where the IQ of a majority of the people in the population lies in the normal
range whereas the IQ of the rest of the population lives in the deviated
range.
Data Science and Big Data
Data Science
• Data science is the domain of study that deals with vast volumes of data
using modern tools and techniques to find unseen patterns, derive
meaningful information, and make business decisions.
• Data science uses complex machine learning algorithms to build predictive
models.
• It is a combination of various filed such as computer science, machine
learning, AI, Mathematics, and statistics.
• Data Science involves the extraction, data transformation, data analysis
and prediction to gain insights about the data.

Big data
• Big data is huge volume of data, information, or the relevant statistics
acquired by large organizations that are difficult to process by traditional
tools.
• It’s about handling and managing vast amounts of data efficiently.
• Big data usually comes from different places, like social media, sensors,
online transactions, and website logs. It needs special tools and technology
to handle and analyse properly.
Big Data Characteristics
There are five v's of Big Data that explains the characteristics.
1. Volume
2. Veracity

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3. Variety
4. Value
5. Velocity

1. Volume
Big Data is a vast 'volumes' of data generated from many sources daily, such as
business processes, machines, social media platforms, networks, human
interactions, and many more.
2. Variety
Big Data can be structured, unstructured, and semi-structured that are being
collected from different sources. Data will only be collected from databases and
sheets in the past, but these days the data are in the forms of PDFs, Emails,
audios, photos, videos, etc.
3. Veracity
Veracity refers to the accuracy of our data. It is one of the most important Big
Data characteristics as low veracity can greatly damage the accuracy of our
results.

4. Velocity
The term ‘velocity’ refers to the speed of generation of data. How fast the data is
generated and processed to meet the demands, determines real potential in the
data.
5. Value
It refers how much collected data is useful to our organization. Does it match our
organization’s goals?
Data Science VS Big Data

Datafication in Data Science.

Datafication as a process of “taking all aspects of life and turning them into data.”
It refers the collective tools, technologies, and processes used to transform an
organization into a data-driven enterprise.

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Datafication is an interesting concept everybody contributing data intentionally
or unintentionally. When we “like” someone or something online, we are
intending to be datafied. when we merely browse the Web, we are
unintentionally, or intentionally being datafied.

Data Science Process

• It refers to a series of steps or stages that data scientists follow to extract
meaningful insights from data and solve specific problems.
• This process involves various techniques, tools, and methodologies that
help transform raw data into actionable knowledge.
• Various steps or stages in data science process as follows.

1. Raw data collection.

This step involves acquiring data from all the identified internal & external
sources, which helps us answer the business question.

The data can be:

• Logs from webservers

• Data gathered from social media
• Census datasets
• Data streamed from online sources.

2. Processing Data
It is a technique that transforms raw data in to understandable format. Data in its
raw form is not useful to any organization. Data processing is the method of
translating it into usable information.

In machine learning (ML) processes, data processing is critical for ensuring large
datasets are formatted in such a way that the data they contain can be interpreted
and parsed by learning algorithms.

3. Cleaning Data.

Data Cleaning is useful as we need to sanitize Data while gathering it. The
following are some of the most typical causes of Data Inconsistencies and Errors:

• Duplicate items are reduced from a variety of Databases.

• The error with the input Data in terms of Precision.
• Changes, Updates, and Deletions are made to the Data entries.
• Variables with missing values across multiple Databases.
• Outliers in the data.

4. Explore Data
The goal of this step is to gain a deep understanding of the data. This step is used
for analysing data in the form of graphs or maps, making it a lot easier to
understand relationship and the trends or patterns in the data. We will look for
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patterns, correlations, and deviations based on visual and descriptive techniques.
The insights we gain from this phase will enable you to start modeling.

5. Data Modeling and Algorithms.

To predict something useful from the datasets, we need to implement machine
learning algorithms. Machine Learning Algorithm aids in creating a usable Data
Model. The model we choose depends on the type of problem we are trying to
solve, which could be a classification problem, a prediction problem, or a basic
description problem. There are several data science modeling techniques data
analysts use, some of which include:
• Linear Regression
• K-nearest neighbour (k-NN)
• Naive Bayes, etc.

6. Visualize Report.
We then can interpret, visualize, report, or communicate our results. This could
take the form of reporting the results up to our boss or co-workers, or publishing
a paper in a journal and going out and giving academic talks about it.

After all these steps, it is vital to convey your insights and findings to the sales
head and make them understand their importance. It will help if you communicate
appropriately to solve the problem you have been given. Proper communication
will lead to action. In contrast, improper contact may lead to inaction.

7. Data Product.
Alternatively, our goal may be to build or prototype a “data product”; e.g., a spam
classifier, or a search ranking algorithm, or a recommendation system. Now the
key here that makes data science special and distinct from statistics is that this
data product then gets incorporated back into the real world, and users interact
with that product, and that generates more data, which creates a feedback loop.

Application of Data Science.

1. In Search Engines
The most useful application of Data Science is Search Engines. As we know when
we want to search for something on the internet, we mostly used Search engines
like Google, Yahoo, Safari, Firefox, etc. Data Science is used to get Searches
faster and return most relevant search results.

2. In Transport
Data Science also entered into the Transport field like Driverless Cars. With the
help of Driverless Cars, it is easy to reduce the number of Accidents.

3. In Finance
Data Science plays a key role in Financial Industries. Financial Industries always
have an issue of fraud and risk of losses. Thus, Financial Industries needs to
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automate risk of loss analysis in order to carry out strategic decisions for the
company. Also, Financial Industries uses Data Science Analytics tools in order
to predict the future. It allows the companies to predict customer lifetime value
and their stock market moves.

4. In E-Commerce
E-Commerce Websites like Amazon, Flipkart, etc. uses data Science to make a
better user experience with personalized recommendations. When we search for
something on the E-commerce websites, we get suggestions similar to choices
according to our past data and also, we get recommendations according to most
buy the product, most rated, most searched, etc. This is all done with the help of
Data Science.

5. In Health Care
In the Healthcare Industry data science act as a boon. Data Science is used for:
• Detecting Tumour.
• Drug discoveries.
• Medical Image Analysis.
• Predictive Modelling for Diagnosis etc.

6. Targeting Recommendation
Targeting Recommendation is the most important application of Data Science.
Whatever the user searches on the Internet, he/she will see numerous posts
everywhere. This can be explained properly with an example: Suppose I want a
mobile phone, so I just Google search it and after that, I changed my mind to buy
offline. Data Science helps those companies who are paying for Advertisements
for their mobile. So everywhere on the internet in the social media, in the
websites, in the apps everywhere I will see the recommendation of that mobile
phone which I searched for. So this will force me to buy online.

7. Data Science in Gaming

In most of the games where a user will play with an opponent i.e. a Computer
Opponent, data science concepts are used with machine learning where with the
help of past data the computer will improve its performance. There are many
games like Chess, EA Sports, etc. will use Data Science concepts.

Issues and Challenges in Data Science.

Data science can be very powerful, but it also comes with several challenges and
issues. Some of them are explained below.

1. Data Availability and Quality

Making sure the data is available and of high quality is one of the biggest
problems in data science. Inaccuracies, inconsistencies, and missing numbers are
signs of poor data quality, which can result in faulty analysis and conclusions.

2. Integration of Data

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Data frequently originates from different sources with different standards,
formats, and structures. This diverse data must be integrated using complex
procedures and a great deal of work.

3. The ability to scale

Scaling data science solutions to manage big data is becoming an increasingly
important challenge as the volume of data keeps growing exponentially. To
guarantee speedy and reliable results, processing massive datasets demands a
significant amount of computational power and effective algorithms.
Overcoming this obstacle requires utilizing cloud computing and putting in place
scalable data infrastructure.

4. Data Security and Privacy

Data security and privacy are critical issues, especially when handling sensitive
data like financial, health, or personal information. Strong security measures must
be put in place by data scientists to safeguard personal information from hacks
and unwanted access.

5. Model Interpretability
Machine learning models can become very complex, making them hard to
understand and explain. It’s often difficult to know why a model makes certain
decisions, especially if it’s based on complex algorithms. A deep learning model
might predict something correctly, but we can’t easily explain why it made that
decision.

6. Adapting to the Quick Advancements in Technology

The discipline of data science is rapidly developing due to constant improvements
in algorithms, instruments, and methods. For data scientists to be productive, they
must constantly improve their abilities and stay up to date with the latest
advancements. This necessitates a dedication to professional development and
lifetime learning.

7. Lack of Talent
The need for qualified data scientists is great, but the supply has not kept up with
the demand. Professionals in data science require a combination of programming,
statistics, and domain expertise because the field is interdisciplinary, and these
talents might be difficult to come by. Employers frequently struggle to find and
keep talented data scientists on staff.

Nasarul Islam K V, Asst. Professor, CKGM Govt. College, Perambra