Unit 12 Data Analytics
Assignment 01
P1) Identify data analytic activities, techniques, and tools.
What is data analytics?
The systematic application of statistical and logical techniques to describe the data scope, modularize
the data structure, condense the data representation, illustrate via images, tables, and graphs, and
evaluate statistical inclinations, probability data, and derive meaningful conclusions known as Data
Analysis
Methods
There are various types of Data Analysis techniques that exist based on business and technology. the
major Data Analysis methods are,
• Text Analysis
• Statistical Analysis
• Diagnostic Analysis
• Predictive Analysis
• Prescriptive Analysis
Data analytic activities
• The question is stated and refined.
• Exploring the data
• Formal statistical models are being developed.
• Interpreting the findings
• Communicating the finding
Data analytic techniques
• Regression analysis
• Monte Carlo simulation
• Factor analysis
• Cohort analysis Cluster analysis
• Time series analysis
• Sentiment analysis
Data analytics tools
• Python
• Microsoft Excel
• Tableau
• Rapid Miner
• KNIME
• Power BI
• Apache Spark
Data analytics process
Determining the objective
• The initial step is of course to determine our objective, which can also be termed as a
problem statement.
Gathering the data
• Once the objective has been set up, the analyst needs to work on gathering and arranging
the suitable data.
• This can be either qualitative or quantitative data.
• Each of the data is primarily arranged into three categories, namely first party, second party
and third party data.
Cleaning the data
• Once the data has been collected, we prepare to execute the analysis which involves cleaning
and scrubbing the data and ensuring that its quality remains unmarred.
Interpreting the data
• Once the data has been cleaned, we focus on analyzing this cleaned data.
• The approach we take up for analyzing this data relies on our aim.
M1) Investigate the three types of data analytic methods and their use in
industry.
Descriptive analysis - What happened
The descriptive analysis method is used to answer the question, "What happened?" It accomplishes
this by organizing, processing, and analyzing raw data from diverse sources in order to generate
useful insights for your company.
Exploratory analysis - How to explore data relationships
The exploratory analysis' principal goal is to explore, as the name implies.
There was still no understanding of the relationship between the data and the variables before it.
The exploratory analysis allows you to identify connections and produce theories and solutions for
specific situations after the data has been analyzed.
Data mining is one of its most common applications.
Diagnostic analysis - Why it happened
Diagnostic data analytics enables analysts and executives by assisting them in gaining a thorough
contextual picture of what occurred.
You'll be able to determine the exact approaches to address the issue or obstacle if you know why
something happened as well as how it happened.
P3) Investigate descriptive analytic techniques and explain with appropriate
examples.
What is descriptive analytic?
The most popular and fundamental type of analytics used by businesses is descriptive analytics.
Descriptive analytics can be used across the board to track operational performance and spot trends.
KPIs like year-over-year percentage sales increase, revenue per customer, and the average time
customers take to pay bills are examples of descriptive analytics. Financial statements, various
reports, dashboards, and presentations all use descriptive analytics.
Example of descriptive data analytics
Business reports of revenue and expenses, cash flow, accounts receivable and accounts payable,
inventory and production.
Financial metric and other business KPIs are examples of descriptive analytics. These include metrics
that assess the health and value of a business, such as the price to earnings ratio, current ratio and
return on invested capital.
Social media engagement Descriptive analytics generates metrics that help determine the return on
social media initiatives, such as growth in followers, engagement rates and revenue attributable to
specific social media platforms.
Surveys Descriptive analytics produces summaries of internal and external survey results, such as a
net promoter score.
M2) Show how these descriptive analytic techniques contribute to decision-
making.
• Descriptive analytics is the process of parsing historical data to better understand the
changes that have occurred in a business.
• Using a range of historic data and benchmarking, decision-makers obtain a holistic view of
performance and trends on which to base business strategy.
• Descriptive analytics can help to identify the areas of strength and weakness in an
organization.
• Examples of metrics used in descriptive analytics include year-over-year pricing changes,
month-over-month sales growth, the number of users, or the total revenue per subscriber.
• Descriptive analytics is now being used in conjunction with newer analytics, such as
predictive and prescriptive analytics.
• In its simplest form, descriptive analytics answers the question, "What happened
• Descriptive analytics is an important component of performance analysis so that managers
can make informed strategic business decisions based on historical data.
These types of analytics use descriptive analytics and integrate additional data from diverse sources
to model likely outcomes in the near term. These forward-looking analytics go beyond providing
information to assisting in decision-making. These types of analytics can also suggest courses of
action that can maximize positive outcomes and minimize negative ones.
These details refer us how descriptive technique is very important to contribute to decision making.
D1) Evaluate the importance of data analytical techniques to the
decisionmaking process.
Big data is a game changer in the business world so organisations are starting to ramp up their digital
transformation. The result has been a huge surge in demand for data analytics. We are seeing more
trends being given birth due to the rise of data. Data analysis decision making has become the go-to
strategy for success in 2019.
• Data analysis is giving small businesses the opportunity to be even more competitive through
the use of analytics.
• Artificial intelligence and machine learning are disruptive technologies that are
revolutionizing the landscape.
Data Analysis is helping companies make smarter decisions that lead to higher productivity and more
efficient operations. It provides a significant competitive advantage.
I. Using Data Analysis to Make the Most out of Consumer Patterns
That’s where business analytics comes into play. It provides the information necessary to make sure
that your business is providing the right products and services. This process is known as predictive
analysis and uses four methods:
Segmentation
Uses information about target customers to split them into separate categories based on
demographics, behavior, and attitudes. Then specific products or services are targeted to these
segments.
Forecasting
Uses analytics to predict specific patterns that allow businesses to understand the demand for a
product or service beforehand.
Pricing
This is the process of analyzing data from various sources – usually competition – to determine how
much a target market is willing to pay for a specific product or service.
Customer Satisfaction
Improving the customer journey is important, and customers today are not afraid to share what
you’re doing wrong. Use this data to improve their experience.
II. Risk Mitigation is Improved through Analytics
One of the biggest reasons why businesses need to use analytics to make better decisions is due to
the risk being posed by the sheer amount of data being gathered. There is so much unstructured
data being delivered that it’s easy to make the wrong decisions unless it’s properly analyzed. With
that said, having the right data analytics strategy in place will predict risk and help make better
decisions moving forward.
