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Types of Data Analysis: Techniques and Methods

The document discusses the various types and methods of data analysis, including text analysis, statistical analysis, diagnostic analysis, predictive analysis, and prescriptive analysis. It also outlines the typical steps in the data analysis process, from data requirement gathering to data visualization. The major types of data analysis are aimed at determining what happened (statistical), why it happened (diagnostic), what could happen (predictive), and what action should be taken (prescriptive).

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John Luis Masangkay Bantolino
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456 views

Types of Data Analysis: Techniques and Methods

The document discusses the various types and methods of data analysis, including text analysis, statistical analysis, diagnostic analysis, predictive analysis, and prescriptive analysis. It also outlines the typical steps in the data analysis process, from data requirement gathering to data visualization. The major types of data analysis are aimed at determining what happened (statistical), why it happened (diagnostic), what could happen (predictive), and what action should be taken (prescriptive).

Uploaded by

John Luis Masangkay Bantolino
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Types of Data Analysis: Techniques and Methods

There are several types of Data Analysis techniques that exist based on business and
technology. However, the major Data Analysis methods are:

 Text Analysis
 Statistical Analysis
 Diagnostic Analysis
 Predictive Analysis
 Prescriptive Analysis

Text Analysis
Text Analysis is also referred to as Data Mining. It is one of the methods of data
analysis to discover a pattern in large data sets using databases or data mining tools. It
used to transform raw data into business information. Business Intelligence tools are
present in the market which is used to take strategic business decisions. Overall it
offers a way to extract and examine data and deriving patterns and finally
interpretation of the data.

Statistical Analysis
Statistical Analysis shows "What happen?" by using past data in the form of
dashboards. Statistical Analysis includes collection, Analysis, interpretation,
presentation, and modeling of data. It analyses a set of data or a sample of data. There
are two categories of this type of Analysis - Descriptive Analysis and Inferential
Analysis.

Descriptive Analysis
analyses complete data or a sample of summarized numerical data. It shows mean and
deviation for continuous data whereas percentage and frequency for categorical data.

Inferential Analysis
analyses sample from complete data. In this type of Analysis, you can find different
conclusions from the same data by selecting different samples.
Diagnostic Analysis
Diagnostic Analysis shows "Why did it happen?" by finding the cause from the
insight found in Statistical Analysis. This Analysis is useful to identify behavior
patterns of data. If a new problem arrives in your business process, then you can look
into this Analysis to find similar patterns of that problem. And it may have chances to
use similar prescriptions for the new problems.

Predictive Analysis
Predictive Analysis shows "what is likely to happen" by using previous data. The
simplest data analysis example is like if last year I bought two dresses based on my
savings and if this year my salary is increasing double then I can buy four dresses. But
of course it's not easy like this because you have to think about other circumstances
like chances of prices of clothes is increased this year or maybe instead of dresses you
want to buy a new bike, or you need to buy a house!

So here, this Analysis makes predictions about future outcomes based on current or
past data. Forecasting is just an estimate. Its accuracy is based on how much detailed
information you have and how much you dig in it.

Prescriptive Analysis
Prescriptive Analysis combines the insight from all previous Analysis to determine
which action to take in a current problem or decision. Most data-driven companies are
utilizing Prescriptive Analysis because predictive and descriptive Analysis are not
enough to improve data performance. Based on current situations and problems, they
analyze the data and make decisions.

Data Analysis Process


The Data Analysis Process is nothing but gathering information by using a proper
application or tool which allows you to explore the data and find a pattern in it. Based
on that information and data, you can make decisions, or you can get ultimate
conclusions.

Data Analysis consists of the following phases:

 Data Requirement Gathering


 Data Collection
 Data Cleaning
 Data Analysis
 Data Interpretation
 Data Visualization

Data Requirement Gathering


First of all, you have to think about why do you want to do this data analysis? All you
need to find out the purpose or aim of doing the Analysis of data. You have to decide
which type of data analysis you wanted to do! In this phase, you have to decide what
to analyze and how to measure it, you have to understand why you are investigating
and what measures you have to use to do this Analysis.

Data Collection
After requirement gathering, you will get a clear idea about what things you have to
measure and what should be your findings. Now it's time to collect your data based on
requirements. Once you collect your data, remember that the collected data must be
processed or organized for Analysis. As you collected data from various sources, you
must have to keep a log with a collection date and source of the data.

Data Cleaning
Now whatever data is collected may not be useful or irrelevant to your aim of
Analysis, hence it should be cleaned. The data which is collected may contain
duplicate records, white spaces or errors. The data should be cleaned and error free.
This phase must be done before Analysis because based on data cleaning, your output
of Analysis will be closer to your expected outcome.

Data Analysis
Once the data is collected, cleaned, and processed, it is ready for Analysis. As you
manipulate data, you may find you have the exact information you need, or you might
need to collect more data. During this phase, you can use data analysis tools and
software which will help you to understand, interpret, and derive conclusions based on
the requirements.
Data Interpretation
After analyzing your data, it's finally time to interpret your results. You can choose
the way to express or communicate your data analysis either you can use simply in
words or maybe a table or chart. Then use the results of your data analysis process to
decide your best course of action.

Data Visualization
Data visualization is very common in your day to day life; they often appear in the
form of charts and graphs. In other words, data shown graphically so that it will be
easier for the human brain to understand and process it. Data visualization often used
to discover unknown facts and trends. By observing relationships and comparing
datasets, you can find a way to find out meaningful information.

Summary:
 Data analysis means a process of cleaning, transforming and modeling data to
discover useful information for business decision-making
 Types of Data Analysis are Text, Statistical, Diagnostic, Predictive,
Prescriptive Analysis
 Data Analysis consists of Data Requirement Gathering, Data Collection, Data
Cleaning, Data Analysis, Data Interpretation, Data Visualization

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