Data Analysis using Normalisation, Standardisation, Pivot tables, and Trend

Analysis

School of Business and

Management

BBA (Business Analytics)

Academic Year 2022-23

BBA 1st Year, Semester II

Course Name: Introduction to Business Analytics

CIA III

Assignment Type: Group

Registration Numbers – 22111733-742

 Introduction

In this project, the following things will be done, to analyse and breakdown the data into
minute fractions to analyse in the most efficient possible way.
1. Normalization
2. Standardization
3. Pivot Table Analysis
4. Trend Analysis
5.

Normalisation

Purpose of Normalisation of a Data –

Normalizing data in Excel means transforming data values to fit within a specific range. This
can be useful when comparing data with different units or scales.
By removing unnecessary data and ensuring that data dependencies make sense, normalising
a dataset allows for effective database organisation. Additionally, it lessens the likelihood of
data errors and aids in performance improvement. Database normalisation enables smaller
disc space requirements. In any machine learning application, model fitting, and data pre-
processing, normalisation is a crucial step. Data must be transformed so that they are either
dimensionless or have similar distributions in order to be normalised.
The process of Normalisation is done as follows through the following FORMULA for the
row 2 –

zi = (xi – min(x)) / (max(x) – min(x))

=((B2-$B$34)/($B$33-$B$34))

Standardization

Standardizing data in Excel means transforming data values to have a mean of zero and a
standard deviation of one.
Purpose - The standard deviation serves as a gauge for how widely values deviate from the
mean (the mean). Important: This function has been replaced with one or more new ones
whose names more accurately describe their purposes and may offer improved accuracy. A
set of values' variance or spread is measured by standard deviation. Standard deviation's key
benefits are: The standard deviation value is consistently constant and clearly stated. The
standard deviation makes it feasible to perform both mathematical and statistical analysis.
The standard deviation is a measurement of how much a group of data can vary or spread
apart. Standard deviation has the following primary benefits: The value of the standard
deviation is always constant and clearly stated. Both mathematical and statistical analysis are
made possible with the help of standard deviation. The term "standard deviation" (or "")
refers to a measurement of the data's dispersion from the mean. A low standard deviation
implies that the data are grouped around the mean, whereas a large standard deviation shows
that the data are more dispersed.

Advantages - The mean absolute deviation impact size has a number of benefits, including
being relatively straightforward, effective, having a practical meaning, and not distorting
extreme scores due to the squaring process used to get the standard deviation.
 Pivot Table

One of Excel's most effective tools, pivot tables let you quickly and simply summarise and
analyse massive volumes of data. Pivot tables are used to group, count, total, average, and
restructure data that is stored in a database. A summary report that displays the total sales by
region, product type, or month can be made using pivot tables. The same information can be
displayed in a chart that is made using pivot tables. Easy data summarization, simple data
analysis, interactive data analysis experience, and the capacity to handle enormous amounts
of data at once are some benefits of employing pivot tables.
Pivot tables also have the flexibility switch between various axises of a graph or a line, in a
single click, which helps to get the specific analysis if required.

Trend Analysis

A statistical method called trend analysis can help you spot and foretell long-term patterns in
your data. Trend analysis can be used to evaluate your company's shortcomings and strengths,
spot gaps, and adjust for greater performance. Using trend analysis, you may assess your
company's long-term solvency and comprehend its short-term liquidity status. Trend analysis
has some benefits, such as the capacity to compare the performance of various variables and
among firms, as well as the ability to spot trends that might not be immediately obvious from
a cursory look at the data.
 What if Analysis

What-if analysis is a process of changing the values in cells to see how those changes will
affect the outcome of formulas on the worksheet. It is used to explore different scenarios and
make predictions based on changes to the data. There are three types of what-if analysis tools
in Excel: scenarios, data tables, and Goal Seek.

Extrapolation is the process of estimating an unknown value using a known series of values
or facts as a basis. Extrapolation is the process of drawing conclusions about a subject using
data already available. The process of interpolating involves calculating a value between two
known values that are contained within a series of values.

Time series data with a seasonal component are handled using triple exponential smoothing.
Three smoothing equations—stationary component, trend, and seasonal—form the
foundation of this approach. Seasonal and trend effects can be either multiplicative or
additive.
For a random variable with a real value, a normal distribution is a particular kind of
continuous probability distribution. Due to its distinctive shape, it is sometimes referred to as
a bell curve or a Gaussian distribution. The bell-shaped curve of the normal distribution is
symmetric around its mean and tapers off at both ends. A normal distribution has an equal
mean, median, and mode. The breadth of the curve and the degree of data dispersion are
determined by the standard deviation.