DATA

ANALYSIS
TYPES
W H AT I S DATA A N A LYS I S

• Data analysis is the process of

inspecting, cleaning, transforming, and
modeling data to discover useful
information, informing conclusions,
and supporting decision-making.
• It involves applying statistical, logical,
and analytical techniques to data to
uncover patterns and insights.
• There are several types of data analysis,
each serving a different purpose and
employing different techniques.
1. DESCRIPTIVE ANALYSIS

• This type of analysis involves

summarizing and describing the basic
characteristics of a dataset.
• It helps in understanding the data
distribution, central tendency, and
variability.
Example: Calculating measures like
mean, median, mode, standard deviation,
and creating visualizations such as
histograms, bar charts, and pie charts.
 2. EXPLORATORY DATA
ANALYSIS (EDA)
• EDA is the process of investigating a
dataset to uncover patterns, detect
anomalies, test hypotheses, and identify
relationships between variables.
• It involves techniques like scatter plots,
box plots, correlation analysis, and
clustering algorithms.
3. INFERENTIAL STATISTICS
• This type of analysis uses sample data to
make inferences or predictions about a
larger population.
• It involves methods like hypothesis
testing, confidence intervals, and
regression analysis.
Example: Company could use survey data
from a sample of customers to estimate
the overall customer satisfaction level
within a specified confidence interval.
 4. PREDICTIVE ANALYSIS

• Predictive analysis uses historical data

and statistical models to forecast future
events or behaviors.
• It includes techniques like regression
analysis, decision trees, and machine
learning algorithms.
Example: A bank using customers' past
financial data to predict the likelihood of
loan defaults.
 5. CAUSAL ANALYSIS

• This type of analysis aims to identify

cause-and-effect relationships between
variables.
• It involves methods like experimental
design, instrumental variables, and
structural equation modeling.
Example: A study could investigate the
causal effect of a new teaching method
on student performance.
 6. TEXT ANALYTICS

• Text analytics involves analyzing

unstructured textual data to extract
insights, sentiments, and patterns.
• It uses techniques like natural language
processing, topic modeling, and
sentiment analysis.
Example: Analyzing social media data to
gauge public opinion about a product or
service.
 7. DIAGNOSTIC ANALYSIS
• Diagnostic analysis is the process of
examining data to identify the root
causes of problems or anomalies.
• It often involves techniques like
decision trees, fault tree analysis, and
root cause analysis.
Example: A manufacturing company
could use diagnostic analysis to identify
the primary sources of product defects.