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The Process Data Analysis

Data analysis is the process of collecting and organizing data in order to draw helpful conclusions from it. This process uses analytical and logical reasoning to gain information from the data. The main aim of data analysis is to understand and try to find meaning in the obtained data which will allow them to derive knowledge that will then be used to make informed decisions for the welfare of the company.

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How is Data Analysis Used in Business?

Data analysis is used to help organizations to make better decisions regarding their business. It is used in various fields of the business like market research, product research, customer reviews, or any other fields for which data exists. Data analysis is important because it provides insights that organizations need in order to make the right choices. Most successful businesses are successful because of solid data analysis.

What are the Examples of Data Analysis?

There are different types of data analysis that help you derive different types of information required. These examples will illustrate the importance of data analysis for a business.

  • Descriptive analysis: this type of analysis looks at the data of the previous year and tells us the insights about it. This is usually used while tracking Key Performance Indicators also known as KPIs, revenues, etc.
  • Diagnostic analysis: this analysis aims to determine why something happened. Once the descriptive analysis shows something positive or negative happenings, the diagnostic analysis is done to be figuring out the reason.
  • Predictive analysis: this analysis shows what is likely to happen in the future. The trends of the past are derived and they are used to predict what is likely to happen.
  • Prescriptive analysis: prescriptive analysis has the job to combine all the three types of data analysis shown and then form a plan of action for the welfare of the business. this type of analysis is where the choices are made.

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