Lesson 1 Analytics

Introduction to Analytics
Lesson 1
Copyright 2014, Simplilearn, All rights reserved.

Objective Slide
After completing
this course, you will
be able to:
Understand what is analytics and the difference between analysis and

analytics
Know the popular tools used in analytics
Understand the role of a data scientist
Know the processes involved in analytics
Define a problem statement
Collect and summarize data
Detect and treat outliers in the data
Analytics versus Analysis
Analytics
Analytics is the science of analysis whereby
statistics, data mining, computer
technology, etc. is used in doing analysis
Analysis
Analysis is the process of breaking down a
complex object into its simpler forms
What is Analytics?
Its the science of wisely acquiring meaningful results from given data using various methods and
technologies.
Aims at discovering pattern of variation from the given data.
It helps to understand the future from past data and the uncertainty related to business.
Its a sophisticated process that uses statistics, mathematics and economics models to predict the
future and prescribe strategies.
How analytics works
Gather Data
Organize Data
Analyze Data
Analytics Stages
How many
students
dropped out last
year?
Descriptive
Why has the

drop-out rate
increased in the
last one year?
Which students
are most likely to
drop out?
Which students
should I target to
keep from
dropping out?
Diagnostic
Predictive
Prescriptive
Information
Decision
Insights
Popular Tools
R
Revolution R
R Studio
Tableau
SAP HANA
Weka
KXEN
SAS
Role of a Data Scientist
Inquisitive, can stare at data and spot trends.

Come out with unrevealed stories hidden in data that helps in creating more useful insights
and help solving business problems.
Work in sync with application developer to get relevant data for analysis.
Make an analytical plan in such a way that the results satisfy the business needs.
Come up with an effective data mining architecture and prepare suitable models.
Respond to and resolve data mining performance issues.
Generate reports that are affordable from a business perspective.
Data Analytics Methodology

DISCOVERY
PUT INTO USE
DATA PREPARING
DELIVER RESULTS
MODEL PLANNING
MODEL BUILDING
Problem Definition
WHAT IS THE PROBLEM?
WHAT IS IT NOT ?
WE HAVE THIS PROBLEM BECAUSE?
WE DONT HAVE A SOLUTION BECAUSE?
Techniques involved in defining a problem
State the problem in a general way
Understand the nature of the problem
Survey the available literature
Go for discussions for developing ideas
Rephrase the research problem into a working proposition
Types of Data
Data can be of two types qualitative and quantitative

Qualitative Data
Data expressed as groups or categories

Descriptive data
E.g. Dividing a population into high,
medium and low height groups
Quantitative Data
Data expressed as numbers

Definitive Data
E.g. The height of a person
Summarizing Data
Summarizing is the process of converting

huge amounts of raw data into a format
that can be easily analyzed.
Summaries differ based on the type of
data; and can be descriptive or graphical.
Marital Status
Frequency
Single
203
Married
2,580
Widowed
334
Divorced
367
Separated
46
Total
3,530
Summarizing Data
Numeric - Descriptive
Mean
Median
Mode
Categorical - Descriptive
Numeric - Graphical
Box plot
Frequency distribution tables
Categorical - Graphical
Bar charts
Histograms
Data Collection
Process of collecting relevant data that aids

in solving the problem statement
Data Collection process needs to be defined,

and systematic.
Collect Relevant Data
Categorize the Data
Observations need to be recorded and

organized for optimal usefulness
Organize the Data
Data Collection Methods

Observation
Experiment
Census
Questionnaire
Survey
Reporting
Registration
Data Sources
Data collection methods fall

broadly into two categories
primary and secondary.
Primary methods are where
the data is gathered directly
through investigating,
experimenting or observing
various entities.
Secondary methods refer to
the methods where the data
has already been gathered
before the study, and is
available as already published
facts and reports.
Data Dictionary
A Data Dictionary is a file that describes the structure of the database itself.
Includes details like
Number of records
Name of each field
Characteristic of each field
Description of each field
Relationships between different fields
It helps in analyzing different data variables and their relationships between each other.
Outlier is a point or an observation that

deviates significantly from the other
observations.
Due to experimental errors or special
circumstances
Outlier detection tests to check for
outliers
Outlier treatment
Retention
Exclusion
Other treatment methods
Mark (Percentage)
Outlier Treatment
Outlier!
Study time (Minutes)
Summary
Here is a quick
recap of what we
have learned in this
lesson
What is analytics and analysis, and what are the differences between them
Popular tools used in analytics
What does a data scientist do
The processes involved in analytics life cycle
How to formally define a problem statement
Methods of collecting and summarizing data for analytics
Data dictionary and its contents
What are outliers and how to detect and treat outliers
Quiz
QUIZ
Which of the following is a secondary data collection method?
a.
Surveys
b. Interviews
c.
Data Sources
d.
Experiments
QUIZ
Which of the following is a secondary data collection method?
a.
Surveys
b. Interviews
c.
Data Sources
d.
Experiments
Answer: c.
Explanation: Surveys, Interviews and Experiments are personally conducted by the
researchers, and hence belong to primary data collection methods. Data sources are already
existing sources of data thus belongs to secondary methods.
QUIZ
2
Which of the following is NOT a part of data dictionary?
a.
Number of records
b. Characteristic of fields
c.
Type of fields
d.
Actual records
QUIZ
2
Which of the following is NOT a part of data dictionary?
a.
Number of records
b. Characteristic of fields
c.
Type of fields
d.
Actual records
Answer: d.
Explanation: Data dictionary refers to the meta data, i.e., defining the attributes of the data.
It does not contain the actual data.
QUIZ
3
Which of the following is a way of summarizing categorical data?
a.
Mean
b. Frequency distribution
c.
Median
d.
Mode
QUIZ
3
Which of the following is a way of summarizing categorical data?
a.
Mean
b. Frequency distribution
c.
Median
d.
Mode
Answer: b.
Explanation: Mean, median and mode are mathematical summaries of numeric or
quantitative data. Frequency distribution is used to summarize categorical or qualitative
data.
QUIZ
4
Which one of the following is NOT a step in data analytics methodology?
a.
Discovery
b. Deliver results
c.
Model building
d.
Re-checking
QUIZ
4
Which one of the following is NOT a step in data analytics methodology?
a.
Discovery
b. Deliver results
c.
Model building
d.
Re-checking
Answer: d.
Explanation: Re-checking is not a step in data analytics methodology.
QUIZ
5
What are the two categories of data collection methods?
a.
Primary and secondary
b. Interval and ratio

c.
Nominal and ordinal
d.
Random and selective
QUIZ
5
What are the two categories of data collection methods?
a.
Primary and secondary
b. Interval and ratio

c.
Nominal and ordinal
d.
Random and selective
Answer: a.
Explanation: Data collection methods are classified into primary and secondary
QUIZ
6
Which of the following is NOT a step in analytics?
a.
Prescriptive
b. Predictive
c.
Descriptive
d.
Productive
QUIZ
6
Which of the following is NOT a step in analytics?
a.
Prescriptive
b. Predictive
c.
Descriptive
d.
Productive
Answer: d.
Explanation: Productive is not a step in analytics.
QUIZ
7
Which of the following is FALSE with reference to the role of a data scientist?
a.
Develop and plan required analytic projects in response to business needs
b. Work with application developers to extract data relevant for analysis.

c.
There is no need of considering statistical algorithm working process.
d.
Contribute to data mining architectures, modeling standards, reporting,

and data analysis methodologies.
QUIZ
7
Which of the following is FALSE with reference to the role of a data scientist?
a.
Develop and plan required analytic projects in response to business needs
b. Work with application developers to extract data relevant for analysis.

c.
There is no need of considering statistical algorithm working process.
d.
Contribute to data mining architectures, modeling standards, reporting,

and data analysis methodologies.
Answer: c.
Explanation: Data scientist needs to consider statistical algorithm working process.
Thank You


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Introduction to Analytics

Copyright 2014, Simplilearn, All rights reserved.

Understand what is analytics and the difference between analysis and

Know the popular tools used in analytics

Understand the role of a data scientist

Know the processes involved in analytics

Define a problem statement

Collect and summarize data

Detect and treat outliers in the data

Copyright 2014, Simplilearn, All rights reserved.

Analytics versus Analysis

Copyright 2014, Simplilearn, All rights reserved.

How analytics works

Copyright 2014, Simplilearn, All rights reserved.

Why has the

Copyright 2014, Simplilearn, All rights reserved.

Role of a Data Scientist

Inquisitive, can stare at data and spot trends.

Data Analytics Methodology

PUT INTO USE

WHAT IS THE PROBLEM?

WE HAVE THIS PROBLEM BECAUSE?

WE DONT HAVE A SOLUTION BECAUSE?

Techniques involved in defining a problem

State the problem in a general way

Understand the nature of the problem

Survey the available literature

Go for discussions for developing ideas

Rephrase the research problem into a working proposition

Data can be of two types qualitative and quantitative

Data expressed as groups or categories

Data expressed as numbers

Summarizing is the process of converting

Frequency distribution tables

Process of collecting relevant data that aids

Data Collection process needs to be defined,

Collect Relevant Data

Categorize the Data

Observations need to be recorded and

Data Collection Methods

Data collection methods fall

Includes details like

Outlier is a point or an observation that

Study time (Minutes)

Popular tools used in analytics

What does a data scientist do

The processes involved in analytics life cycle

How to formally define a problem statement

Methods of collecting and summarizing data for analytics

Data dictionary and its contents

What are outliers and how to detect and treat outliers

Copyright 2014, Simplilearn, All rights reserved.

Copyright 2014, Simplilearn, All rights reserved.

Which of the following is a secondary data collection method?

Copyright 2014, Simplilearn, All rights reserved.

Which of the following is a secondary data collection method?

Which of the following is NOT a part of data dictionary?

Copyright 2014, Simplilearn, All rights reserved.

Which of the following is NOT a part of data dictionary?

Which of the following is a way of summarizing categorical data?

Copyright 2014, Simplilearn, All rights reserved.

Which of the following is a way of summarizing categorical data?

Which one of the following is NOT a step in data analytics methodology?

Copyright 2014, Simplilearn, All rights reserved.