TYPE OF DATA ANALYSIS

In a technical sense, data analytics can be described as the process of using data to answer
questions, identify trends, and extract insights. There are multiple types of analytics that can
generate information to drive innovation, improve efficiency, and mitigate risk.

There are four key types of data analytics, and each answers a different type of question:

 Descriptive analytics asks, “What happened?”

 Predictive analytics asks, “What might happen in the future?”
 Prescriptive analytics asks, “What should be done next?”
 Diagnostic analytics asks, “Why did this happen?”

Each of the above types has its own unique insights, advantages, and disadvantages. Used in
combination they provide a more complete understanding of the business's needs and
opportunities.

Click each image to learn more about each type of data analytics.

Descriptive Analytics
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Predictive Analytics
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Prescriptive Analytics
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Diagnostic Analytics
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escriptive Analytics

Descriptive analytics primarily uses observed data to identify key characteristics of a

data set. It relies solely on historical data to provide reports on past events. This type of
analysis is also used to generate ad hoc (as needed) reports that summarize large
amounts of data to answer simple questions like “how much?” or “how many?” It can
also be used to ask deeper questions about a specific problem. Descriptive analytics is
not used to draw inferences or predictions from its findings; it is just a starting point
used to inform decisions or to prepare data for further analysis.

The descriptive analytics process is as follows:

1. Ask a historical question that needs an answer, such as “How much of product X
did we sell last year?”
2. Identify required data to answer the question
3. Collect and prepare data
4. Analyze data
5. Present results

Examples of descriptive analytics include:

  Summarizing historical events such as sales, inventory, or operations data
 Understanding engagement data such as likes and dislikes or volume of page
views over time
 Reporting general trends like revenue growth or employee injuries
 Collating survey results

Predictive Analytics

Predictive analytics utilizes real-time and/or past data to make predictions based on
probabilities. It can also be used to infer missing data or establish a predicted future
trend. Predictive analytics uses simulation models and forecasting to suggest what
could happen going forward, which can guide realistic goal setting, effective planning,
management of performance expectations, and avoiding risks. This information can
empower executives and managers to take a proactive and fact-based approach to
strategy and decision making.

The predictive analytics process is as follows:

1. Ask a forward-thinking question, such as “Can we predict how much product X

we will sell next year?”
2. Collect and prepare data
3. Develop predictive analytics models
4. Apply models to the prepared data
5. Review models and present results

Examples of predictive analytics include:

 Forecasting customer behavior, purchasing patterns, and identifying sales trends

 Predicting customer preferences and recommending products to customers
based on past purchases and search history
 Predicting the likelihood that a given customer will purchase another product or
leave the store
 Identifying possible security breaches that require further investigation
 Predicting staffing and resourcing needs
 rescriptive Analytics
 Prescriptive analytics builds on descriptive and predictive analysis by
recommending courses of action that will reap the greatest benefit for the
organization. In short, prescriptive analytics tells you what should be done in a
given situation. It helps executives, managers, and employees make the best
decisions based on available data.
 A good example of prescriptive analytics is the field of GPS-based map and
direction applications. These applications provide route options to a destination
based on traffic volume, road conditions, and maximum speed. It can then
prescribe the best route based on user-defined objectives such as shortest
distance or quickest time.
Diagnostic Analytics

Diagnostic analytics enhances the descriptive analytics process by digging in

deeper and attempting to discover the cause(s).

The diagnostic analytics process is as follows:

1. Identify anomalies (inconsistencies) in data sets

2. Collect data related to the anomalies
3. Use statistical techniques to uncover relationships and trends that
could explain the anomalies
4. Present possible causes

An example of diagnostic analytics is using subscription cancellations,

correlated with customer comments and ratings, to determine the most
common reasons why users cancel subscriptions. Another example would be
determining whether there is a correlation between the demographics of
consumers and their purchasing patterns at specific times of year.

PORTFOLIOS PROJECT

1.3.5 Steps to Creating a README

GitHub is designed as a place for IT and Data Science professionals to share, collaborate on, and
showcase their work. Once you create a new username in GitHub, you can create and share your
own repositories. A repository is similar to the file structure on a computer, it is organized in a
hierarchy and can contain text files, images and program files.

If you create a repository with the same name as your username, and make that repository public,
you can create a README file that is your personal page and will appear when anyone views
your profile. In addition to this README, in each project repository, you want to create a
README file that uses your chosen project methodology as an outline. In this course, we use
the Data Analysis Lifecycle as an outline. Remember that the README file will be the first
thing someone visiting your repository will read, so it is important to provide enough
information for the reader to fully understand your project.

The following is a sample project README file that was created using a template. Select each
section of the document for more information.

expand_less
Project Title

The name of the project and a brief description of the main goal and purpose of the project.
expand_less
Demo Link

If you have a working demo of the project, provide the link so that readers can see your project
in action.

expand_less
Table of Contents (optional)

If the project has sections, a table of contents can be generated from the section titles. In this raw
text example, the section titles are proceeded by the ## characters.

expand_less
Business Understanding

Your description of the goals and purpose for the project. In this section, you should explain a
little about what you wanted to accomplish, why you selected this analysis project, and any
challenges that you faced while working through the project.

expand_less
Data Understanding

Explain your data sources and why you chose the particular data sets that you did. You can also
discuss additional enhancements or analysis that you want to perform in the future.

expand_less
Screenshots of Visualizations/Results

Examples of the process or outputs. In analytics, these can be images of visualizations.

expand_less
Technologies

List all of the technologies you used to complete the project, to show your proficiency with these
tools.

expand_less
Setup

Instructions on how to set up or install the environment and any dependencies that are required.
This section can also include usage instructions for readers who want to duplicate your results.
expand_less
Approach

For analytics projects, this section describes the process and the types of analysis utilized to
obtain the data, prepare and clean it, and to test the outcomes.

expand_less
Status

The current status of the project. In most cases, you will be putting information into the
repository while you are working on the project, so the status will be “in process” and, later,
“complete/released”. If there are multiple versions of your project, you can indicate the version
here, as well.

expand_less
Credits
List of individuals or organizations that contributed or provided assistance to you while you
created the project. You can also list sites that provided in1.3.5 Steps to Creating a
README

GitHub is designed as a place for IT and Data Science professionals to share, collaborate on, and
showcase their work. Once you create a new username in GitHub, you can create and share your
own repositories. A repository is similar to the file structure on a computer, it is organized in a
hierarchy and can contain text files, images and program files.

If you create a repository with the same name as your username, and make that repository public,
you can create a README file that is your personal page and will appear when anyone views
your profile. In addition to this README, in each project repository, you want to create a
README file that uses your chosen project methodology as an outline. In this course, we use
the Data Analysis Lifecycle as an outline. Remember that the README file will be the first
thing someone visiting your repository will read, so it is important to provide enough
information for the reader to fully understand your project.

The following is a sample project README file that was created using a template. Select each
section of the document for more information.

expand_less
Project Title

The name of the project and a brief description of the main goal and purpose of the project.

expand_less
Demo Link
If you have a working demo of the project, provide the link so that readers can see your project
in action.

expand_less
Table of Contents (optional)

If the project has sections, a table of contents can be generated from the section titles. In this raw
text example, the section titles are proceeded by the ## characters.

expand_less
Business Understanding

Your description of the goals and purpose for the project. In this section, you should explain a
little about what you wanted to accomplish, why you selected this analysis project, and any
challenges that you faced while working through the project.

expand_less
Data Understanding

Explain your data sources and why you chose the particular data sets that you did. You can also
discuss additional enhancements or analysis that you want to perform in the future.

expand_less
Screenshots of Visualizations/Results

Examples of the process or outputs. In analytics, these can be images of visualizations.

expand_less
Technologies

List all of the technologies you used to complete the project, to show your proficiency with these
tools.

expand_less
Setup

Instructions on how to set up or install the environment and any dependencies that are required.
This section can also include usage instructions for readers who want to duplicate your results.

expand_less
Approach
For analytics projects, this section describes the process and the types of analysis utilized to
obtain the data, prepare and clean it, and to test the outcomes.

expand_less
Status

The current status of the project. In most cases, you will be putting information into the
repository while you are working on the project, so the status will be “in process” and, later,
“complete/released”. If there are multiple versions of your project, you can indicate the version
here, as well.

expand_less
Credits

List of individuals or organizations that contributed or provided assistance to you while you
created the project. You can also list sites that provided inspiration or feedback.

1.3.6 Lab - Research Portfolio Requirements

In this lab, you will explore Data Analyst Portfolios and create checklist to showcase data analyst
skills.

Part 1: Research Data Analyst Portfolios

Part 2: Create Data Analyst Skills Checklist

descriptionLab - Research Portfolio Requirements

Background / Scenario
A data analytics portfolio highlights your work and displays your personal branding and
communication skills. A data analysist needs to also have a plan to develop the necessary skills
and to perform and present their projects to prospective employers. Use this lab as a starting
point to begin your Data Analyst Portfolio. As you progress through the course, you can use the
activities within the course to build out your first analytic project.

Required Resources
 Mobile device or PC/laptop with a browser and an internet connection