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Data Analysis

Definition

Data analysis is the systematic process of inspecting, cleaning, transforming, and modeling data to discover useful information, draw conclusions, and support decision-making.

Benefits

  • Informed decisions: Provides evidence-based insights for strategic choices.
  • Trend detection: Identifies patterns, correlations, and anomalies.
  • Efficiency: Reveals process improvements and waste.
  • Prediction: Enables forecasting using historical data (e.g., regression models).
  • Risk reduction: Supports early detection of problems or deviations.

Main Types

  • Descriptive: What happened? (e.g., averages, charts)
  • Diagnostic: Why did it happen? (e.g., correlation analysis)
  • Predictive: What will happen? (e.g., machine learning, regression)
  • Prescriptive: What should be done? (e.g., optimization models)