DATA
ANALYTICS
UNIT 1 : Introduction, Descriptive Statistics
WHAT IS DATA ANALYTICS?
Data Analytics is the science of analyzing raw data to extract meaningful
insights and support decision-making.
Data Analytics is the process of examining, cleaning, transforming, and modeling
data to discover useful information, draw conclusions, and support decision-
making.
🧩 Key Components of Data Analytics:
Data Collection – Gathering raw data from various sources
Data Cleaning – Removing errors, duplicates, and irrelevant data
Data Transformation – Structuring and formatting data for analysis
Data Analysis – Applying statistical and computational methods to derive insights
Data Visualization – Presenting results through graphs, charts, and dashboards
Decision-Making – Using insights to guide business or research actions
TYPES OF DATA ANALYTICS:
Type Purpose Example
Descriptive What happened? Sales report of last quarter
Identifying reasons for low
Diagnostic Why did it happen?
sales
What will happen in the Forecasting product
Predictive
future? demand
Recommending pricing
Prescriptive What should be done?
strategy
1 Descriptive Analytics
1️⃣
✅ Goal: Understand what has happened
📘 Definition:
Descriptive analytics summarizes historical data to identify patterns and trends.
🧰 Techniques Used:
•Aggregation
•Data summarization
•Frequency distributions
•Cross-tabulations
•Data visualization (bar charts, pie charts, line graphs)
🧾 Examples:
•Monthly sales report
•Average customer age
•Website traffic overview
•Number of products sold per region
🧠 Use Case:
"How many customers visited our site last month?"
2️⃣Diagnostic Analytics
✅ Goal: Understand why something happened
📘 Definition:
Diagnostic analytics digs deeper into data to identify causes and relationships behind past events.
🧰 Techniques Used:
•Drill-down and data discovery
•Correlation analysis
•Root cause analysis
•Regression analysis
🧾 Examples:
•Investigating why sales dropped in Q2
•Analyzing factors causing customer churn
•Finding why a machine broke down
🧠 Use Case:
"Why did our customer satisfaction score decrease?"
3
3️⃣ Predictive Analytics
✅ Goal: Forecast future outcomes
📘 Definition:
Predictive analytics uses statistical models and machine learning to anticipate future trends or
behaviors based on historical data.
🧰 Techniques Used:
•Regression models
•Classification algorithms
•Time series forecasting
•Decision trees
•Neural networks
🧾 Examples:
•Forecasting next month’s sales
•Predicting customer churn
•Credit scoring and loan default prediction
🧠 Use Case:
"Which customers are likely to unsubscribe in the next 30 days?"
4️⃣Prescriptive Analytics
✅ Goal: Recommend actions to take
📘 Definition:
Prescriptive analytics suggests the best course of action based on data, predictions, and desired outcomes.
🧰 Techniques Used:
•Optimization algorithms
•Simulation
•Scenario analysis
•Decision analysis
•Reinforcement learning
🧾 Examples:
•Suggesting the best route for delivery trucks
•Recommending discounts to maximize profit
•Optimizing inventory levels based on demand forecasts
🧠 Use Case:
"What is the best price to set for this product to maximize revenue?"
WHY IS DATA ANALYTICS IMPORTANT?
•Improves decision-making
•Helps in identifying trends & patterns
•Enhances business performance
•Supports predictive planning
•Enables personalized customer experiences
TOOLS USED IN DATA
ANALYTICS
Excel, Tableau, Power BI
Python, R
SQL, NoSQL
Machine Learning Libraries (e.g., Scikit-learn, TensorFlow)
APPLICATIONS OF DATA
ANALYTICS
Business: Market analysis, customer behavior, sales forecasting
Healthcare: Disease prediction, treatment effectiveness
Finance: Fraud detection, risk management
Education: Student performance analytics
Sports: Player performance and strategy analysis
WHAT IS DESCRIPTIVE
STATISTICS?
Descriptive statistics refers to methods for summarizing and
organizing the information in a data set to make it easy to understand
and interpret.
Purpose
To describe the main features of a dataset.
To summarize large amounts of data using numbers, tables, and graphs.
It does not draw conclusions or make predictions beyond the data.
DESCRIPTIVE STATISTICS
Descriptive statistics involves summarizing and organizing data to make it
easily understandable. It includes:
Measures of Central Tendency
Measures of Dispersion (Variability)
Data Visualization
MEASURE OF CENTRAL
TENDENCY
MEDIAN
MODE
MEASURES OF DISPERSION
(SPREAD OF DATA)
DATA VISUALIZATION
Data Visualization Tools
Bar Chart: Categorical data
Histogram: Distribution of numerical data
Pie Chart: Proportions of a whole
Box Plot: Visualizes median, quartiles, and outliers
Measure Indicates Formula / Example
(70+75+80+85+90)/5 =
Mean Average value
80
Middle of 12, 18, 25, 30, 35
Median Middle value
→ 25
Mode Most frequent value Mode of 2,4,4,6,7,4 = 4
Range Spread from min to max 50 - 10 = 40
Variance Average squared deviation s² = 4
Standard Deviation Spread around the mean s=2
IQR Middle 50% spread Q3 - Q1 = 18 - 7 = 11
Thanks
