Business Analytics
Assignment -1
Name – Yogender Bansal
Roll No- 11712303920
________________________________________________________________
Q1. Based on the Data Summarization Methods and Techniques discussed in the class compile the
advantages and disadvantages of each technique in a tabular form and also mention the data type
suitable for each technique used.
Ans.
S.no Techniques Advantage
.
1. Pie Chart show areas proportional to the
number of data points in each
category
summarize a large data set in
visual form
be visually simpler than other
types of graphs and permit a visual
check of the reasonableness or
accuracy of calculations
display relative proportions of
multiple classes of data
2 Histogram estimate key values at a glance
clarify trends better than do tables
or arrays
show each interval in the
frequency distribution
closely resemble the bell curve if
sufficient data and classes are used
3 Frequency summarize a large data set in
visual form.
begin to show central tendency,
dispersion, and
clustering/modality.
estimate key values, especially the
mean, and show skew and kurtosis
clarify trends better than do tables,
arrays, and most other graphs.
Disadvantage Data Type
be easily manipulated to yield Nominal Data
false impressions
fail to describe the attribute,
behavior, or condition of interest
reveal little about central
tendency, dispersion, skew, or
kurtosis
fail to reveal key assumptions,
norms, causes, effects, or
patterns
fail to reveal key assumptions, Continuous
norms, causes, effects, or Data
patterns
be easily manipulated to yield
false impressions
be inadequate to describe the
attribute, behavior, or condition
of interest
require additional written or
verbal explanation
Lose details on relative numbers Nominal Data
and proportions vis-a-vis the
histogram
be inadequate to describe the
attribute, behavior, or condition
of interest
fail to delineate each interval in a
frequency distribution
require additional written or
verbal explanation
4 Bar Graph be visually simpler than other
types of graphs
show areas proportional to the
number of data points in each
category
display relative proportions of
multiple classes of data
permit a visual check of the
reasonableness or accuracy of
calculations
5 Mean It is based on all the values.
It is rigidly defined
It is not based on the position in
the series.
It is easy to understand & simple
calculate.
It is easy to understand the
arithmetic average even if some of
the details of the data are lacking.
6 Median Graphic presentation
Can be calculated even if values of
all observations are not known.
Simplicity,
Free from the effect of extreme
values,
Certainty,
Real value,
Possible even when data is
incomplete
7 Mode Simple and popular
Less effect of marginal values
Best representative
Graphic presentation
No need of knowing all the items
or frequencies
8 Standard It gives a more accurate idea of
Deviation how the data is distributed
Shows how much data is clustered
around a mean value
Not as affected by extreme values
be easily manipulated to yield Nominal Data
false impressions
fail to reveal key assumptions,
norms, causes, effects, or
patterns
fail to describe the attribute,
behavior, or condition of interest
reveal little about central
tendency, dispersion, skew, or
kurtosis
It gives misleading conclusions. Interval Data
It has upward bias.
It is affected by extreme values.
Not appropriate with nominal
or ordinal data.
Sensitive to extreme outliners.
It cannot be calculated for open
end classes.
It cannot be located graphically
Unrealistic Ordinal Data
Difficult to rank large number of
data values.
Lack of representative character
No based on all the observations
Not capable of algebraic Nominal Data
treatment
Difficult
Ignores extreme marginal
frequencies
Complex procedure of grouping
Uncertain and vague
Only used with data where an Continuous
independent variable is plotted Data
against the frequency of it
It doesn't give you the full range
of the data
It can be hard to calculate
Assumes a normal distribution
pattern
9 Range easy to compute and understand
Communicates information of
interest to readers of a report.
best for symmetric data with no
outliers
good option for ordinal data
10 Interquartile Important in evaluating outliners.
Range
Reduce influence of outliners and
extreme scores in expressing
variability.
Uses more information than the
range.
Appropriate as index of variability
with ordinal measures.
It is very much affected by the Ordinal Data
extreme values.
Range cannot be computed in
case of open-end distribution.
It is not based on each and every
item of the distribution.
The value of Range is affected
more by sampling fluctuations
it is a positional measure, based Ordinal Data
on only the twenty-fifth and
seventy-fifth percentiles
The next measures of variation
to be examined in these notes,
the standard deviation and
variance, remedy this defect
For these next measures, the
value associated with each case
is taken into account.