Topic 1: Introduction Sadegh Kazemi

Data Analytics

Topic 1
“Introduction”

Objectives
• To understand the importance of learning statistical tools in
terms of the volume of the data exists in the real world
• To understand different types of variables (data) used in
businesses
• To learn the basic vocabulary of statistics
• To know the different ways of collecting data

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Topic 1: Introduction Sadegh Kazemi

The basic vocabulary

Variable
A variable is a characteristic of an item or individual.
❖ e.g., size, color, playtime …

Data
Data are the different values associated with a variable.
❖ e.g., size: small, medium, large …
❖ e.g., color: Black, Blue, Red …
❖ e.g., playtime: 5hrs. 12 hrs. 20 hrs. …

Data Collection
After defining the variables, we need to collect data for them. Data
sources are created in one of four ways:
• As data distributed by an organization or individual
• As outcomes of a designed experiment
• As responses from a survey
• As a result of conducting an observational study

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Topic 1: Introduction Sadegh Kazemi

What is Data Analytics?

Data analysis is the sience of analysing, cleaning, and modelling
data with the goal of discovering useful information to support
decision-making.

What is statistics?
Statistics is the branch of mathematics that transforms numbers
into useful information for decision-makers.
Statistics helps us to collect, organize, analyze and interpret data.

Why learn statistics?

Statistics provides you with methods for making better sense of
the data used every day and answer the questions about them.

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Topic 1: Introduction
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Topic 1: Introduction Sadegh Kazemi

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How businesses use statistical tools?

In the business world, data anamlytics has these specific
applications:
• to summarize business data
• to draw conclusions from those data
• to make reliable forecasts about business activities
• to improve business processes
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Topic 1: Introduction Sadegh Kazemi

The types of variable used in business

Categorical
Variables Discrete
Numerical
Continuous

Categorical variables (also known as qualitative variables):

Variables that have values that can only be placed into categories
(e.g., gender; (male, female); intensity: (low, moderate, or high)

Numerical variables (also known as quantitative variables):

Variables that have values that represent quantities.

Discrete variables: variables that have numerical values that arise

from a counting process.
❖ e.g., number of texts you send in a day. It could be 0, 1, 2, …
❖ e.g., number of siblings: 0, 1, 2, …

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Topic 1: Introduction Sadegh Kazemi

Continuous variables: variables that produce numerical

responses that arise from a measuring process.
❖ e.g., the time you wait for a bus. Waiting time could be 1
minute, 5.1 minutes, 1.11 minutes, or 1.113 minutes, depending
on the precision of the measuring device used.

Another classification based on measurement

scales

Nominal Scale
Categorical
Ordinal Scale
Variables
Interval Scale
Numerical
Ratio Scale

A nominal scale classifies data into distinct categories in which

no ranking is implied.
❖ e.g., gender: “Male”, “Female”
❖ e.g., “Blue”, “Green”, “Yellow”

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Topic 1: Introduction Sadegh Kazemi

An ordinal scale classifies values into distinct categories in which

ranking is implied.
❖ e.g., the way a jacket fit: “Too Small”, “Somewhat small”,
“Fit as expected”, “Somewhat large”, “Too large”
❖ e.g., ordinal time of day: “Night”, “Dawn”, “Noon”,
Afternoon”, “Evening”

An interval scale is an ordered scale in which the difference

between measurements is a meaningful quantity but does not
involve a true (absolute) zero point.
❖ e.g., temperature: The difference between a temperature of
20 degrees and 10 degrees is the same difference as
between 90 degrees and 80 degrees.
❖ A temperature of 0 expressed in F or C scales does not
mean “no heat”.

The ratio scale applies to data for which the difference and ratio
between two values can be calculated and interpreted. In ratio
scale, the difference between the measurements involves a true
(absolute) zero point.
❖ e.g., the temperature in Kelvin is a ratio variable, as 0
Kelvin really does mean “no heat”.
❖ e.g., height expressed in inches, income expressed in
dollars.
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