What is Data Analysis?
Data analysis is a process of collecting, cleaning, transforming, and modeling data to identify patterns and trends that lead to informed decision-making.
Importance of Data Analysis
Data analysis is important in business because at the root is usually a problem the business is facing. It is with this problem in mind that data analysis can be built around and actionable insights can be determined (read more about Problem Framing here).
Data Analysis Process
- Identify the business need or purpose of the analysis
- Map out the data sources you will use
- Collect, clean, and process the data
- Perform exploratory data analysis and apply statistic methods
- Draw conclusions
- Present your findings
Data Analysis Methods
The two main methods of data analysis are:
- Qualitative analysis – designed to answer questions such as ‘what’, ‘how’, or ‘why’.
- Quantitative analysis – outcomes are measured in terms of numbers.
Types of Data Analysis
The types of data analysis are:
- Descriptive analysis
- Predictive analysis
- Prescriptive analysis
- Exploratory data analysis
- Text analysis or text mining