Module – 4 Why Data Visualization is Important

Data visualization

graphical representation of data and information using displays such as charts, graphs, and maps

Trends, patterns, and distributions of data are more easily comprehended when

data are displayed visually

Analytics

scientific process of transforming data into insights for making better decisions

Developments in Analytics

tech
method
computing and storage

Technological advances

•incredible amounts of data from scanner technology, e-commerce, social networks, sensors, and personal electronic devices such as cell phones.

Methodological developments

•faster algorithms can handle and explore massive amounts of data for data visualization, machine learning, optimization, and simulation.

Explosion in computing power and storage capability

•better computational hardware, parallel computing, and cloud computing, enable businesses to solve larger problems faster and with greater accuracy.

Descriptive analytics

•encompasses a set of analytical tools that describes what has happened in the past.

Descriptive analytics examples

data queries, standard reports, descriptive statistics, data visualization, cluster analysis, and what-if spreadsheet models

Predictive analytics

•consists of analytical tools that use models constructed from past data to predict the future or ascertain the impact of one variable on another.

Predictive analytics examples

linear regression, time series analysis, and predictive data mining.

Prescriptive Analytics

includes mathematical or logical models that indicate the best course of action to take in decision-making

Prescriptive Analytics examples

optimization, simulation, and decision analysis.

We create data visualizations for two reasons:

1.Exploring data

2.Communicating/explaining a message

Quantitative data

Data for which numerical values indicate magnitude. Arithmetic operations can be performed on quantitative data.

Categorical data

Data for which labels or names identify categories of like items. Arithmetic operations cannot be performed on categorical data.

Cross-sectional data

Data collected from several entities over the same time frame

Time series data

Data collected over several time periods.

•A working definition of big data:

•Any set of data too large or too complex to be handled by a desktop computer.

volume

the amount of data generated

velocity

the speed at which the data are generated

Variety

the diversity in types and structures of data generated

Veracity

•the reliability of the data generated

word cloud

visual display containing a document’s key terms.

The size of the word is proportional to the word’s frequency in the document.

Benford’s Law

the First-Digit Law): the proportion of observations in which the first digit is 1 through 9 follows given probabilities.

Benford's Law may help detect

fraud

A High-Low-Close Stock chart

shows the high value, low value, and closing value of the price of a share of stock over time.
shows how the closing price changes over time and the price volatility each day

stacked column chart

shows part-to-whole comparisons, either over time or across categories, using different colors or shades of color.

funnel chart

shows the progression of a numerical variable from larger to smaller values for various categories.

line chart

 shows a variable of interest plotted over several time periods. A lone chart helps to understand what happened in the past, identify trends over time, and project future levels.

control chart,

 a graphical display of a variable of interest plotted over time relative to lower and upper control limits, helps determine whether a production process is in or out of control

Geographic maps help display

results of complicated predictive models, such as predicting the path of a hurricane.

spaghetti chart

owes its name to the fact that the depiction of multiple flows through a system using a line for each possible path resemble spaghetti

shot chart

displays the location of the shots attempted by a basketball player in a game with different symbols or colors indicating the outcome of a shot.