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INTRODUCTION TO DATA SCIENCE ANALYTICS

1.1 Definition and Importance of Data Science Analytics

Definition of Data Science Analytics

Data Science Analytics refers to the systematic process of examining data in order to extract
meaningful information, discover hidden patterns, and support decision-making. It is an
interdisciplinary field that combines principles of statistics, computer science, and domain-
specific knowledge to transform raw data into actionable insights.

The primary objective of analytics is to convert unprocessed data into valuable information
that can be interpreted and applied for problem-solving and strategic planning. The process
involves several stages, including data collection, preparation, exploration, analysis,
visualization, and reporting.

Components of Data Science Analytics

1. Data - A collection of raw facts and figures that may lack context. For example, a list
of customer ages or the number of sales recorded each day.

2. Information - Data that has been processed and organized to provide meaning. For
instance, calculating the average age of customers from a dataset.

3. Knowledge - Insights derived from interpreting information within a specific context.

For example, recognizing that younger customers tend to purchase certain products
more frequently.

4. Decision-Making - The application of knowledge in order to choose actions that

achieve desired outcomes.

Importance of Data Science Analytics

The significance of Data Science Analytics can be observed across industries, organizations,
and research fields. Its importance lies in the following areas:

 Identification of Trends and Patterns - Analytics uncovers behaviors and

relationships within data, such as seasonal fluctuations in sales or recurring customer
behaviors.

 Informed Decision-Making - Decisions based on data are more accurate and reliable
than those based solely on intuition or assumptions.

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  Improvement of Efficiency - Data-driven approaches optimize resources, reduce
waste, and streamline operations.

 Forecasting and Prediction - Statistical models and historical analysis enable

prediction of future outcomes, such as estimating future sales or anticipating service
demand.

 Competitive Advantage - Organizations that adopt data-driven practices are able to

innovate faster, serve customers better, and remain competitive in the market.

Interdisciplinary Nature of Analytics

Data Science Analytics is not confined to one discipline. It requires the integration of:

 Statistics and Mathematics - To provide the foundation for modeling, hypothesis

testing, and measurement of data variability.

 Computer Science and Technology - To handle large volumes of data, automate

processes, and apply algorithms.

 Business and Domain Knowledge - To interpret results within the context of specific
industries such as healthcare, finance, tourism, or education.

Example

Consider a dataset containing monthly visitor counts to a cultural site. By itself, this dataset
represents raw data. When organized, the dataset shows that the average number of visitors
per month is 10,000, which transforms it into information. Further analysis reveals that visitor
counts peak during holiday seasons due to festivals, which creates knowledge. Applying this
knowledge, resource allocation and event planning can be improved, representing the
decision-making stage.

1.2 Role of Excel in Data Analytics

Microsoft Excel is one of the most widely used applications for data management and
analytics. Although advanced programming languages such as Python and R are often
associated with modern data science, Excel continues to serve as a foundational tool
because of its accessibility, simplicity, and analytical capabilities.

Excel

Excel is a spreadsheet program developed by Microsoft that enables the organization,

calculation, analysis, and visualization of data. Data is structured in a grid composed of rows

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and columns, with each intersection forming a cell. A cell can contain numbers, text, dates,
or formulas.

Significance of Excel in Data Analytics

1. Accessibility - Excel is available in almost all business, education, and government

environments, making it one of the most widely adopted analytics tools.

2. Ease of Use- The platform allows both simple and complex calculations without
requiring advanced programming knowledge.

3. Versatility - Excel supports the entire analytics process, including data entry, cleaning,
analysis, visualization, and dashboard creation.

4. Integration - Excel has the capability to import and export data from multiple external
sources such as databases, websites, and reporting systems.

Core Features Relevant to Analytics

 Formulas and Functions - Excel supports built-in operations such as =A1+A2

(formula) and predefined functions such as =SUM(A1:A10) or =AVERAGE(B1:B20).

 Data Tools - Features such as sorting, filtering, and conditional formatting provide
methods for exploring datasets and identifying patterns.

 PivotTables and PivotCharts - These tools enable the summarization and

visualization of large volumes of data in an efficient manner.

 Visualization Tools - Excel includes chart types such as bar, column, line, and pie
charts that transform data into visual insights.

Definitions of Key Terms

 Spreadsheet - A digital file containing one or more worksheets designed to store and
analyze data.

 Worksheet - A single page within a spreadsheet, consisting of a matrix of rows and

columns.

 Cell - The smallest data unit in a worksheet, identified by a column letter and row
number (e.g., A1, C5).

 Formula - A user-defined mathematical expression used to calculate values, always

beginning with an equal sign (=).

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  Function - A predefined command in Excel designed to perform specific operations
(e.g., SUM, AVERAGE, VLOOKUP).

 PivotTable - A tool used to reorganize, summarize, and analyze large datasets by

grouping and aggregating values.

 Dashboard - A consolidated display that combines charts, tables, and performance

indicators into a single interactive interface.

Application in Analytics

In the field of analytics, Excel provides a structured approach to data analysis. For example,
a dataset containing monthly customer transactions can be imported into a worksheet. The
use of sorting and filtering highlights significant values, PivotTables summarize totals by
category, and charts present overall trends. Through conditional formatting, key patterns
such as peak months or low sales periods can be emphasized. In this way, Excel functions as
both a storage medium and an analytical environment, supporting evidence-based decision-
making.

1.3 Types of Data

Data

Data refers to raw facts, figures, or details that have not yet been processed into a meaningful
form. It serves as the foundation of analytics, providing the input from which insights and
knowledge are derived. In analytics, data can be broadly categorized into two main types:
Quantitative Data and Qualitative Data.

Understanding the type of data is essential because the methods of analysis, the tools used,
and the conclusions drawn depend largely on the nature of the data.

Quantitative Data

Quantitative data refers to information that can be measured numerically. It represents

quantities and can be expressed in numbers, making it suitable for mathematical and statistical
analysis.

Characteristics of Quantitative Data:

 Can be counted or measured.

 Supports mathematical operations such as addition, subtraction, multiplication, and

division.

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  Provides objective information that can be compared across time periods or
categories.

Subtypes of Quantitative Data:

1. Discrete Data - Data that consists of whole numbers and cannot take decimal values.

o Example: The number of visitors to a museum in a single day (e.g., 1,250

visitors).

2. Continuous Data - Data that can take any value within a range, including decimals.

o Example: The length of stay of a tourist in days (e.g., 3.5 days).

Applications in Analytics:
Quantitative data is used for revenue analysis, statistical modeling, forecasting, and
performance measurement.

Qualitative Data

Qualitative data refers to information that is descriptive in nature and cannot be directly
measured numerically. Instead, it expresses characteristics, categories, or attributes of the
subject being studied.

Characteristics of Qualitative Data:

 Cannot be measured in exact numbers.

 Often expressed in words, labels, or categories.

 Provides subjective insights that explain reasons, opinions, or behaviors.

Subtypes of Qualitative Data:

1. Nominal Data - Categories without a natural order or ranking.

o Example: Tourist nationalities (e.g., Filipino, Japanese, Korean, American).

2. Ordinal Data - Categories that have a defined order or ranking but without consistent
differences between ranks.

o Example: Customer satisfaction ratings (e.g., Poor, Fair, Good, Excellent).

Applications in Analytics:
Qualitative data is often used for surveys, customer feedback, market segmentation, and
preference analysis.

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Comparison Between Quantitative and Qualitative Data

Aspect Quantitative Data Qualitative Data

Definition Data that represents measurable Data that represents descriptive

quantities expressed in numbers. attributes, categories, or labels.

Nature Objective, factual, and Subjective, descriptive, and

measurable. explanatory.

Form of Numbers (e.g., 1,250 tourists, Words, categories, or symbols

Expression 75% occupancy). (e.g., “Satisfied,” “Cultural
tourism,” “Excellent”).

Subtypes Discrete (whole numbers) and Nominal (categories without order)

Continuous (values with and Ordinal (categories with
decimals). order).

Analysis Statistical operations such as Categorization, ranking, frequency

Method averages, percentages, counts, and thematic analysis.
correlations, and forecasting.

Visualization Charts such as histograms, scatter Charts such as bar charts, pie
plots, and line graphs. charts, and word clouds.

Example “Monthly revenue is $50,000” or “Tourists rated the service as

“Average stay is 3.5 days.” Excellent” or “Most visitors prefer
cultural tours.”

Importance of Identifying Data Types

The distinction between quantitative and qualitative data is crucial because it determines:

 The statistical methods that can be applied.

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  The visualization techniques that are appropriate.

 The interpretation of results for decision-making.

For example, numerical data such as daily sales can be represented through line charts and
analyzed using averages. In contrast, qualitative data such as customer satisfaction levels
are better presented using bar charts or frequency tables.

1.4 Data-Driven Decision Making

Data-Driven Decision Making (DDDM) is the systematic process of using data analysis and
interpretation to guide business choices, solve problems, and identify opportunities. Instead
of relying on assumptions, intuition, or guesswork, decisions are grounded in factual evidence
obtained through the collection, preparation, and analysis of data.

Importance of Data-Driven Decision Making

 Ensures accuracy by basing decisions on factual insights rather than personal

opinions.

 Improves efficiency by identifying the best courses of action.

 Supports transparency since choices can be explained with evidence.

 Enhances competitiveness through data-backed strategies.

 Reduces risks by identifying potential problems early.

Key Components of Data-Driven Decision Making

1. Data Collection - Gathering reliable and relevant data from sources such as surveys,
transaction records, or digital platforms.

2. Data Preparation - Cleaning, formatting, and organizing data to ensure consistency

and accuracy.

3. Data Analysis - Applying statistical, computational, or visualization techniques to

interpret the data.

4. Insights Generation - Extracting meaningful patterns and trends from the analysis.

5. Decision Implementation - Using the insights to choose actions, strategies, or

policies.

6. Evaluation - Assessing whether the decision achieved its intended results.

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Process of Data-Driven Decision Making

1. Identify the problem or opportunity.

2. Define the objectives of the decision.

3. Collect the required data.

4. Clean and prepare the data for analysis.

5. Apply appropriate analytical methods (e.g., descriptive statistics, predictive models).

6. Interpret findings to extract insights.

7. Implement the chosen action based on evidence.

8. Monitor and evaluate results for continuous improvement.

Benefits of Data-Driven Decision Making

 Provides measurable and objective results.

 Encourages innovation by revealing hidden opportunities.

 Builds confidence in decision-making processes.

 Strengthens accountability within organizations.

Example: A resort management team wants to improve guest satisfaction. Instead of relying
on personal assumptions, the team analyzes guest survey data, booking trends, and service
usage reports. The analysis shows that guests frequently request faster check-in and
improved Wi-Fi. Based on these insights, the resort invests in digital check-in systems and
stronger internet infrastructure. As a result, guest satisfaction scores increase significantly.

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