Question

• How is data analytics different from statistics?
• Analytics tools fall into 3 categories:descriptive, predictive, and prescriptive. What are the main differences among these categories?
• Explain how businesses use analytics to convert raw operational data into actionable information. Provide at least 1 example

Answer 1

Statistical analysis is used in order to gain an understanding of a larger population by analyzing the information of a sample. Statistical analysis allows inferences to be drawn about target markets, consumer cohorts and the general population by expanding findings appropriately to predict the behaviour and characteristics of the many based on the few.

Data analysis is the process of inspecting, presenting and reporting data in a way that is useful to non-technical people. Because data is next to useless if it can’t be understood by the decision-makers who need to use it, data analysts act as translators between the numbers and figures and the people who need to know about them.

Data is used in statistical analysis as it can be combined from various sources in order to assist the process of statistical analysis.

• Analytics basically works for an individual item

Eg. Taking decisions like, ‘Should I make an offer to this potential customer'.

• Statistics works at the population level

Eg. Determining customer behaviour