Types of Data Analysis

1. Types of Data Analysis: A comprehensive guide Data Analysis has become an integral part of running a smooth and successful business. This is because when the analysis of data is done effectively, it not only gives you a better understanding of your business’s previous performance but, you can make better future decisions too. There are many different data analysis tools available to help you make sense of your data. Some of these tools are designed for specific types of data, while others are more general purpose. Choosing the right tool for your needs will depend on the type and amount of data you have, as well as your goals for analyzing it. There are basically four types of data analysis and you can utilize them at all levels of your company’s operations. Types of data analysis The four types of data analysis are: Descriptive Analysis Diagnostic Analysis Predictive Analysis

2. Prescriptive Analysis While we are separating these into categories, all of these are related and build-up on one another. Likewise, as we move from the simplest type to comparatively complex one, you will face an increase in the degree of difficulty and resource required. Fortunately, the level of added insight and value also increases. Descriptive Analysis It is the most common and simplest use of data in the industry. In simple terms Descriptive Data Analysis answers “what happened” by summing up past data. It simply describes what has happened and doesn’t try to explain why it might have happened. Furthermore, it does not try to establish cause-and-effect relationships and aims to provide just an easily digestible snapshot. Some good examples of descriptive data analysis in action can be Google Analytics other social media analytics. Google Analytics or any There are mainly two techniques used in descriptive data analysis: Data aggregation Data Mining Data Aggregation Simply gathering data and presenting it in a summarized format is data aggregation. To give you a clear example, an e-commerce has a hold of all kinds of data relating to their website or page visitors and customers. The summarized data, or aggregate data can provide an overview of the wider data set. For instance, the average number of purchases or the gender of the customer. Data Mining This is the analysis part. Data Mining is when the analyst explores the data and tries to uncover any trends or patterns. The outcome of Decriptive Data Analysis is a visual representation of data as a pie chart or a bar graph. Diagnostic Analysis After “what happened” is answered, the succeeding step is delving deeper and as “why it happened?”

3. Diagnostic Data Analysis takes the insights from descriptive data analysis and dives down to find the causes for those outcomes. This type of data analysis is mostly used to create more connections between data as well as identify behavior patterns. To give you a clear indication of how diagnostic analysis is performed, here is an example: Your website or page may have a healthy volume of website visitors and many visitors may have used the add to cart action. However, there might be a drop in sales occurred because very few visitors actually proceeded to make a purchase. In order to get to the root cause of this, the analyst has to drill down further on this information. Upon further inspection, it surfaces that most of the visitors abandoned ship when it came to filling their phone numbers. Now, the analyst may find that there were some problems in the contact information form. See, how with a little bit of digging, the analyst went closer to finding an explanation for the data anomaly. However, diagnostic data analysis is not only about finding or fixing problems, you can also use it to see the cause of positive results. You may find that your visitor number significantly increased on any month and you can delve to find about the campaigns that you might have run during that month that caused it. This will help you to determine what type of campaign will be suitable for you to achieve your goals. For more information: Visit Here