CHAPTER 1-INTRODUCTION

TO DATA
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WHAT IS DATA?
• Data is a word we hear everywhere nowadays. In general, data is a

collection of facts, information, and statistics and this can be in various

forms such as numbers, text, sound, images, or any other format.

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• “Data is distinct pieces of information, usually formatted in a special way”.

Data can be measured, collected, reported, and analyzed, where upon it is often

visualized using graphs, images, or other analysis tools.

Raw data (“unprocessed data”) may be a collection of numbers or characters before it’s

been “cleaned” and corrected by researcher.

Data processing commonly occurs in stages, and therefore the “processed data” from

one stage could also be considered the “raw data” of subsequent stages.
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WHAT IS INFORMATION?
• Information is data that has been processed , organized, or structured in

a way that makes it meaningful, valuable and useful.

• It is data that has been given context , relevance and purpose.

• It gives knowledge, understanding and insights that can be used for

decision-making problem-solving, communication and various other

purposes.
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USES OF DATA
You can use data in various ways. Common examples of data use include:

Predictive modeling:

• Data helps develop predictive models that can forecast future outcomes,

such as sales, customer churn, or equipment failures. These models help

businesses identify potential risks, seize opportunities, and optimize

resources.
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• Budgeting: Data analysis is an important component of financial

planning and budgeting. By analyzing historical data, companies can

forecast future revenues and expenses, allocate resources effectively,

and identify areas for cost reduction or investment.

• Marketing: Data-driven marketing enables businesses to understand

consumer preferences, segment their audience, and develop targeted

campaigns. By analyzing customer data, companies can improve the

effectiveness of their marketing strategies and enhance customer

experiences.
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• Fraud Detection: Data analysis techniques, such as anomaly detection

and machine learning algorithms, are employed to identify suspicious

activities and potential fraud in industries like finance, e-commerce, and

insurance
 CATEGORIES OF DATA
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Data can be categories into two main parts –

• Structured Data: This type of data is organized data into specific format, making

it easy to search , analyze and process. Structured data is found in a relational

databases that includes information like numbers, data and categories.

• Un Structured Data: Unstructured data does not conform to a specific structure or

format. It may include some text documents , images, videos, and other data that is

not easily organized or analyzed without additional processing.

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TYPES OF DATA

• As you explore various types of data, you'll come across four main

categories: nominal, ordinal, discrete, and continuous. Understanding

these data categories can help you choose the appropriate analysis

techniques and make sense of the information you encounter.

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NOMINAL DATA
• Nominal data refers to categorical information that lacks inherent order or

ranking. When you work with nominal data, you'll often use it to classify or

group items based on their attributes.

• Examples include your gender, nationality, or hair color. While analyzing

nominal data, you might create frequency tables or bar charts to visualize

the distribution of categories.

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ORDINAL DATA
• Ordinal data represents information with a clear order or ranking, but

the differences between the values are not quantifiable.

• When you handle ordinal data, you might see examples like customer

satisfaction ratings, educational levels, or survey responses.

• Analyzing ordinal data typically involves calculating measures of

central tendency, such as the median, and using graphs like bar charts or

pie charts to display the data distribution.

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DISCRETE DATA

• Discrete data consists of distinct, separate values or categories that you can

measure.

• As you work with discrete data, you'll often represent it as whole numbers, such

as the number of employees in a company, the number of cars in a parking lot,

or the number of customers visiting a store.

• When analyzing discrete data, you can use summary statistics, including mean,

median, and mode, as well as visualizations like histograms or bar charts to

display the data distribution

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CONTINUOUS DATA
• Continuous data embodies information that can assume any

value within a defined range or interval.

• It's typically measured on a continuous scale, such as time,

temperature, or distance.
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• For instance, you might work with a person's height, the weight of an

object, or the speed of a car. While analyzing continuous data, you can

apply various techniques, including calculating summary statistics

(mean, median, standard deviation) and visualizing data with

histograms, scatterplots, or line charts to identify trends and

relationships.
 QUANTITATIVE DATA VS 15

QUALITATIVE DATA
Quantitative data

Quantitative data refers to numerical information that you can measure, count, or

express using numbers. When you deal with quantitative data, you'll encounter

examples like temperature, age, and number of purchases.

This type of data allows you to perform various calculations, such as averages,

correlations, and regressions, to identify patterns, trends, and relationships. Discrete

data and continuous data are types of quantitative data.

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• When analyzing quantitative data, you can use summary statistics to

describe the dispersion of the data. Additionally, you can employ

visualizations like histograms, scatterplots, and line charts to display the

data distribution and detect any trends or anomalies.

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QUALITATIVE DATA

• Qualitative data, on the other hand, is non-numerical information

describing qualities, characteristics, or opinions.

• As you work with qualitative data, you might come across examples

like customer feedback, colors, or textures.

• Analyzing qualitative data often involves categorizing, coding, or

interpreting the information to reveal patterns or themes. Nominal data

and ordinal data are types of qualitative data.

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• While working with qualitative data, you can use various techniques to

organize and make sense of the information.

• Some common methods include thematic analysis, sentiment analysis,

and descriptive statistics. Visualizations, such as word clouds, can also

be helpful in displaying the frequency of words or phrases in the data.