Professional Documents
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Data Analytics PPT 1
Data Analytics PPT 1
Concepts
What is Data?
• E.g: Raja Raja Chola built Big Temple at Tanjore in 1010 AD.
• E.g: When we say a story at the end we give the moral of the story which may not be
present verbaticaly in the story.
Types of Data
• Structured: 21MBA0102, stored in database and can be accessed via SQL (RDBMS)
• Animation
• By 2025, it’s estimated that 463 exabytes of data will be created each day globally –
that’s the equivalent of
• Data analytics refers to the process and practice of analyzing data to answer questions,
extract insights, and identify trends.
• This is done using an array of tools, techniques, and frameworks depending on the
type of analysis being conducted. (Ref : Harvard Business School Online)
• Predictive analytics, which relies on historical data, past trends, and assumptions to
answer questions about what will happen in the future.
• Prescriptive analytics, which aims to identify specific actions that one should take to
reach future targets or goals.
Business Analytics
• Data scientists create and leverage algorithms, statistical models, and their own
custom analyses to collect and shape raw data into something that can be easily understood.
– Human Resource
– Finance
– Operations
– Sales / Marketing
• Domain Knowledge
• Analytical Thinking
– Critical Thinking
• Applying Right Tool for the given problem (many times Excel will do)
• Communication
• Time series record developments over time; say, monthly ice-cream output
• Cross sectional data captures a situation at a moment of time; e.g value of sales at
various branches on one day.
• Scales of Measurement
(HR/Finance/Marketing), sales regions (North, South, East, West) – Here no quantities are
implied – No maths can be done on them.
• Categories can be sorted into certain order (ascending / descending), but differences
between ranks are not necessarily equal. e.g. customer feedback (bad / average / good /
excellent) – No Maths can be done
• Measurable differences are identified, but the zero point is arbitrary. e.g, Is 20 deg
Celsius twice as hot as 10 deg Celsius? Convert to Fahrenheit to see that it is not. The
equivalents are 68 deg and 50 deg Fahrenheit. Temperature is measured on an interval scale
with arbitrary zero points (0 deg Celsius and 32 deg
• There is a true zero and measurements can be compared as ratios. e.g, if Ram, Gopi,
and Bala achieve a sales target of Rs. 250K, 500K and 1000K in a given month, then we can
claim that the achievement of Bala is twice that of Gopi and 4 times that of Ram – We can
divide and do the Maths.
• Continuity
e.g assign 0.4 of a salesman for promoting a product in a region. Here only whole numbers
are permitted.
• Discrete values are counted in whole numbers (integers); e.g, the number of satisfied
customers
• Monetary systems are based on 100 subdivisions. e.g, 100 paise is equal to 1 Rupee;
100 cents to the dollar.
• Amounts less than one big unit are fractions.
• Proportions and percentage are all same thing with different names.
• A percentage increase followed by the same percentage decrease does not give us
back where we started. e.g, do not accept a 50% increase in salary for six months, to be
followed by a 50% cut.
• A frequent business problem is finding what a number was before it was increased by
a given percentage.
• E.g, If an invoice is for Rs. 575 including 15% GST, the tax exclusive amount is
575/(1.15) = Rs. 500.
• Fractions
• If anything is increased by an amount x/y, the increment is x/(x+y) of the new total.
• Rs. 100 increased by ¾ is Rs. 175; the Rs. 75 increment is 3/(3+4) = 3/7 of the new
total, namely, Rs. 175
• Individuals use small amounts of cash; corporates talk of huge amount of cash.
• They are used to save time writing out large and small numbers.
• Rounding
• Values ending in 4 or less are rounded down (1.24 becomes 1.2), amounts ending in 5
or more are rounded up (1.25 becomes 1.3).
• 1.45 rounds to 1.5, which rounds a second time to 2 despite the original being nearer
to 1.
• E.g, the finance director has received annual 10% pay raises for the last 10 years. By
how much ahs his salary increased? Not 100%, but 160%.
• Think of proportionate increase. He earned 1.1 times the amount in the year before.
• In year one, he received the base amount (1.0) times 1.1 = 1.1.
• Take away 1 and multiply by 100, we get 159.4% increase (rounded as 160%)
• Powers – When the growth rate is always the same, multiply the proportion by itself a
number of time.
• If India’s GDP is 1.7% higher during Jan-March quarter than during Oct-Dec quarter
then it is equivalent to an annual rate of increase of 7% (1.017 x 1.017 x 1.017 x 1.017)
• Logarithms
• 3 is the logarithm of 1000 to the base 10 • Logs are used for flattening out growth
rates.
• In Maths, multiplication and division of large number can be done using Logarithms.
• Used in outlier analysis and visualization of data whose range (difference between
max and min) is high.