DATA ANALYTICS – is the science of
analyzing raw data to pull out useful
insights so conclusions can be drawn.
DATA ANALYST – individuals that
perform the collecting, understanding
& creating report of conclusions from
the raw data available.
- Is like the person that pick-up
the Jigsaw puzzle pieces (raw
data) & do the work to produce
a clear picture or message out
of the Jigsaw pieces.
BUSINESS ANALYTICS
- Management of customer
relationships
- Financial and marketing
activities
- Supply chain management
- Human resource planning
- Pricing decisions
- Sport team game strategies
IMPORTANCE OF BUSINESS
ANALYTICS
- There is strong relationship of
BA with
• Profitability of businesses
• Revenue of businesses
• Shareholder return.
- BA enhances understanding of
data.
- BA is vital for businesses to
remain competitive.
- BA enables creation of
informative reports.
DESCRIPTIVE ANALYTICS
- uses data to understand past
and present.
PREDICTIVE ANALYTICS
- analyzes past performance.
PRESCRIPTIVE ANALYTICS
- uses optimization techniques.
RETAIL MARKDOWN DECISIONS
- most department stores clear
seasonal inventory by reducing
prices.
- The question is “When to
reduce the price and by how
much?
- DESCRIPTIVE ANALYTICS:
examine historical data for
similar products (prices, units
sold, advertising,…)
- PREDICTIVE ANALYTICS: predict
sales based on price.
- PRESCRIPTVE ANALYTICS: find
the best sets of pricing and
advertising to maximize sales
revenue.
 SCOPE OF BUSINESS ANALYTICS
DATA – collected facts and figures.
DATA BASE – collection of
computer files containing data.
INFORMATION – comes from
analyzing data.
METRICS – are used to quantify
performance.
MEASURES – are numerical values
of metrics.
DISCRETE METRICS – involve
counting on time or not on time.
- number or proportion of on
time deliveries.
CONTINUOUS METRICS – are
measured on a continuum.
• Delivery time
• Package time
• Purchase price
LEVEL OF MEASUREMENT
- When collecting or gathering
data we collect data from
individuals cases on particular
variables.
- A variable is a unit of data
collection whose values can
vary.
- Variables can be defined into
types according to the level of
mathematical scaling that can
be carried out on the data.
There are four types of data or
levels of measurement.
1. Categorical (Nominal)
2. Ordinal
3. Interval
4. Ratio
CATEGORICAL (NOMINAL) DATA
- Nominal or categorical data is
data that comprises of
categories that cannot be rank
ordered – each category is just
different.
- The categories available cannot
be placed in any order and no
judgement can be made about
the relative size or distance
from one category to another.
- Categories bear no quantitative
relationship to one another.
Examples: - customer’s location
(America, Europe, Asia)
- employee classification
(manager, supervisor,
associate)
What does this mean? No
mathematical operations can be
performed on the data relative to
each other.
Therefore, nominal data reflect
qualitative differences rather than
quantitative ones.
CATEGORICAL (NOMINAL) DATA
Example:
2 subgroups of qualitative data:
• Dichotomic - if it takes the
form of a word with two
options (gender - male or
female)
• Polynomic - if it takes the form
of a word with more than two
options (education - primary
school, secondary school, and
college/university).
ORDINAL DATA
- Ordinal data is data that
comprises of categories that
can be rank ordered.
- Similarly with nominal data
the distance between each
category cannot be calculated
but the categories can be
ranked above or below each
other.
- No fixed units of
measurement
Examples: survey responses,
performance evaluation (poor,
average, good, very good, excellent)
- What does this mean? Can
make statistical
judgements and perform
limited maths.
INTERVAL AND RATIO DATA
■ Both interval and ratio data are
examples of scale data.
■ Scale data:
– data is in numeric
format ($50, $100,
$150)
– data that can be
measured on a
continuous scale.
– the distance between
each can be observed
and as a result measured
the data can be placed
in rank order.
RATIO DATA growing exponentially with
time.
■ Ratio data measured on a
continuous scale and does
- a is a term for datasets that
have a natural zero point.
are so large or complex
■ Ratios are meaningful. that traditional data
■ Examples: processing applications are
inadequate for them.
– Monthly sales
– Delivery times
Examples:
– Weight
– Height
■ transaction processing
– Age systems,
METHODS OF PRESENTING DATA ■ customer databases,
- Textual ■ emails,
- Tabular
- Graphical ■ medical records,
■ internet clickstream logs,

BIG DATA ■ mobile apps,

- is a term that ■ social networks

describes large, hard-to-
manage volumes of data –
both structured and
unstructured – that
inundate businesses on a
day-to-day basis.

- is a term used to describe a

collection of data that is
huge in size and yet
TYPES OF BIG DATA
Structured Data - is the easiest to
work with. It is highly organized with
dimensions defined by set
parameters.
- has certain predefined
organizational properties
and is present in structured
or tabular schema, making
it easier to analyze and
sort.
- Examples of sources:
Spreadsheets like Excel,
Web logs, medical devices,
online forms
Semi-structured Data - refers to data
that is not captured or formatted in
conventional ways. Semi-structured
data does not follow the format of a
tabular data model or relational
databases because it does not have a
fixed schema.
- Examples of sources: Emails
by inbox, draft and sent,
tweets organized by
hashtags, images, and
videos with tags.
Unstructured Data
- is information that either
does not have a pre-
defined data model or is
not organized in a pre-
defined manner.
- is typically text-heavy, but
may contain data such as
dates, numbers, and facts
as well.
- Examples of sources:
Emails, Text files, social
media, mobile and
communications data,
media.
CHARACTERISTICS OF BIG DATA
(5V’s)
1. Velocity – speed at which data
is emanating and changes are
occurring between the diverse
data sets.
2. Volume – this refers to the
sheer volume of data being
generated every second.
3. Variety – can use structured as
well as unstructured data.
4. Veracity – data reliability and
trust. Verifying and validating
the data.
5. Value – having access to big
data is all well and good but
that’s only useful if we can turn
it into a value.
TYPES OF BIG DATA ANALYTICS
DESCRIPTIVE ANALYTICS - helps
answer questions about what
happened, and these types
summarize large datasets to describe
outcomes to concern party.
DIAGNOSTIC ANALYTICS - helps
answer questions about why things
happened, and it take the findings
from descriptive analytics and dig
deeper to find the cause.
PREDICTIVE ANALYTICS - helps
answer questions about what will
happen in the future and these types
use historical data to identify trends
and determine if they are likely to
recur.
DESCRIPTIVE ANALYTICS - helps
answer questions about what should
be done and by using insights from
predictive analytics, data-driven
decisions can be made.
TYPES OF CHARTS/GRAPHS
LINE GRAPH - is commonly used to
display change over time as a series
of data points connected by straight
line segments on two axes. The line
graph therefore helps to determine
the relationship between two sets of
values, with one data set always
being dependent on the other set.
BAR GRAPH - or bar chart is a chart
with rectangular bars with lengths
proportional to the values that they
represent. The bars can be plotted
vertically or horizontally. Bar graphs
are good for plotting data that spans
a length of time (for example, for
comparing achievement between the
beginning and the end of the year) or
they can be used for comparing
different items in a related category
(for example, achievement results for
different classes
PIE GRAPH - when it comes to
statistical types of graphs and charts,
the pie chart (or the circle chart) has
a crucial place and meaning. It
displays data and statistics in an easy-
to-understand ‘pie-slice’ format and
illustrates numerical proportion. Each
pie slice is relative to the size of a
particular category in each group. To
say it in another way, the pie chart
breaks down a group into smaller
pieces. It shows part-whole
relationships.
HISTOGRAM - shows continuous data
in ordered rectangular columns (to
understand what continuous data is
see our post discrete vs continuous
data). Usually, there are no
gaps between the columns. The
histogram displays a frequency
distribution (shape) of a data set. At
first glance, histograms look alike to
bar graphs. However, there is a key
difference between them. Bar Chart
represents categorical data and
histogram represent continuous data.
PICTOGRAPH - or a pictogram is one ■ TIME SERIES - Data set is
of the more visually appealing types composed of quantitative
of graphs and charts that display entries taken at regular
numerical information with the use of intervals over a period. e.g.,
icons or picture symbols to represent The amount of precipitation
data sets. They are very easy to read measured each day for one
statistical way of data visualization. A month.
pictogram shows the frequency of
data as images or symbols. Each
image/symbol may represent one or APPLICATIONS/TRENDS OF BIG DATA
more units of a given dataset. - Understanding and aiming
customers
- Understanding and
DOT PLOT - or dot plot is a statistical
improving business
chart consisting of data points plotted
practices
on a fairly simple scale, typically using
- Health care
filled in circles.
- Sports
- Science and research
- Optimizing machine and
PARETO CHART - is a type of chart
device performance
that contains both bars and a line
- Security and law
graph. It is a graph that indicates the
enforcement
frequency of defects, as well as their
- Smart cities
cumulative impact. Pareto Charts are
- Financial operation
useful to find the defects to prioritize
in order to observe the greatest
overall improvement.

STEM AND LEAF PLOTS - represents

data by separating each data value
into two parts: the stem (such as the
leftmost digit) and the leaf (such as
the rightmost digit)
MEASURES OF CENTRAL TENDENCY
A single value that is used to identify
the “center” of the data.
– it is thought of as a
typical value of the
distribution.
– precise yet simple
– most representative
value of the data
MEAN - Most common measure of
the center. Also known as arithmetic
average.
PROPERTIES OF THE MEAN
– may not be an actual
observation in the data set.
– can be applied in at least
interval level.
– easy to compute.
– every observation contributes
to the value of the mean.
– subgroup means can be
combined to come up with a
group mean.
– easily affected by extreme
values.
MEDIAN - divides the observations
into two equal parts.
If the number observations are odd,
the median is the middle number. If
the number of observations is even,
the median is the average of the 2
middle numbers.
MODE - occurs most frequently,
nominal average and may or may not
exist.
PROPERTIES OF THE MODE
– can be used for qualitative as
well as quantitative data.
– may not be unique.
– not affected by extreme values
– can be computed for
ungrouped and grouped data.
All three measures describe an
“average”. Choose the one that best
represents a “typical” value in the
set.
Mean
-The most familiar average.
-A reliable measure because it
considers every entry of a data set.
-May be greatly affected by outliers
or skew.
Use the mean when:
- sampling stability is
desired.
- other measures are to be
computed.
Median
- -A common average.
- -Not as effected by skew or
outliers.
Use the median when:
- the exact midpoint of the
distribution is desired.
- there are extreme
observations.
Mode
- may be used if there is an
overwhelming repeat.
Use the mode when:
- when the "typical" value is
desired.
- when the dataset is
measured on a nominal
scale.
MEASURES OF DISPERSION
RANGE - the difference between the
maximum and minimum value in a
data set, i.e.
R = MAX – MIN
- The larger the value of the
range, the more dispersed
the observations are.
- It is quick and easy to
understand.
- A rough measure of
dispersion.
INTERQUARTILE RANGE - the
difference between the third quartile
and first quartile, i.e.
IQR = Q3 – Q1
- Reduces the influence of
extreme values.
- Not as easy to calculate as
the Range.
VARIANCE - important measure of SAMPLE SD
variation and it shows variation about
the mean. n

 i
( x − x ) 2

POPULATION VARIANCE s= i =1

N n −1
 i
( X −  ) 2

 = i =1
2 COEFFICIENT OF VARIATION
- measure of relative
N variation.
- usually expressed in
percent
SAMPLE VARIANCE - shows variation relative to
mean.
n

 i
- used to compare 2 or more
( x − x ) 2
groups.

s2 = i =1
 SD 
CV = 
n −1   100%
 Mean 
STANDARD DEVIATION - most
important measure of variation,
square root of variance and has the
same units as the original data.

POPULATION SD

 i
( X −  ) 2

 = i =1
N
FORMULAS: MEAN
ΣFM
Mean = 𝑵
RANGE
- R(range) = H (highest value MEDIAN
– L (lowest value).
𝑵
median =LL + i ( 𝟐 − <cf)
Example:
R = 50 - 9
R = 41 Example:

NUMBER OF CLASSES
c = 1 + 3.322 log N

Example:
C = 1 + 3.322 log 40
C = 6.32 OR 6 MODE

CLASS INTERVAL
𝑅
I=𝐶

Example:
41
I= I = 6.83 OR 7
6