ch 7 slater

Descriptive Analytics

Summarizing past data to understand what has happened.

Exploratory Data Analysis

Understanding data structures, checking assumptions, identifying outliers, and exploring correlations without formal hypothesis testing.

Use Cases of Descriptive Analytics

Accountants analyze year-over-year financial changes or compare metrics against industry averages.

Diagnostic Analytics

Attempts to explain why events happened using data analysis.

Informal Analysis

Builds on descriptive analytics to propose reasons for observed patterns.

Formal Analysis

Uses hypothesis testing to statistically validate reasons for phenomena.

Type I Error (False Positive)

Incorrectly rejecting a true null hypothesis.

Type II Error (False Negative)

Failing to reject a false null hypothesis.

Predictive Analytics

Predicts future outcomes based on historical data.

Modeling Steps

Include selecting target outcomes, preparing data, and using statistical models to forecast future events.

Model Validation

Ensuring the model accurately predicts new data, avoiding overfitting.

Prescriptive Analytics

Suggests actions based on predictions.

Visualizing Data

Visual data is processed faster and more intuitively than text.

Comparison Tools

Use bar charts for categorical comparisons and bullet charts to highlight benchmarks.

Correlation Tools

Employ scatter plots and heatmaps to illustrate relationships and intensities.

Distribution Tools

Utilize histograms for frequency distribution and boxplots for summarizing data spread.

Trend Tools

Line charts depict changes over time; area charts visualize volume changes.

Part-to-Whole Tools

Pie charts show proportional data, and treemaps provide hierarchical data breakdowns.

Design Principle: Simplification

Reducing complexity for easier understanding of visualizations.

Design Principle: Emphasis

Highlighting critical data through visual cues like color and weight.

Design Principle: Ethical Presentation

Avoiding deceptive practices by properly representing data.