Table of Contents

Table of Contents

Business Analytics ... 2

Descriptive Analytics ... 2

Predictive Analytics ... 2

Prescriptive Analytics ... 2

Four Groups of Data Classifications ... 2

Data Visualisation in Business Analytics ... 2

Descriptive Summary Measures ... 3

Measures of Central Tendency ... 3

Measures of location ... 3

Percentiles ... 3

Quartiles ... 3

Measures of Variability ... 3 Z-scores ... Error! Bookmark not defined.

Shape and Symmetry ... Error! Bookmark not defined.

Skewness ... Error! Bookmark not defined.

Kurtosis ... Error! Bookmark not defined.

Box-and-whisker plots ... Error! Bookmark not defined.

Outliers ... Error! Bookmark not defined.

Measures of Association ... Error! Bookmark not defined.

Correlation ... Error! Bookmark not defined.

Probability ... Error! Bookmark not defined.

Structure of probability ... Error! Bookmark not defined.

Set Notation ... Error! Bookmark not defined.

Venn diagram ... Error! Bookmark not defined.

Intersection ... Error! Bookmark not defined.

Contingency Tables ... Error! Bookmark not defined.

Marginal Probability ... Error! Bookmark not defined.

Union Probability ... Error! Bookmark not defined.

Joint Probability ... Error! Bookmark not defined.

Conditional Probability ... Error! Bookmark not defined.

The Normal Distribution ... Error! Bookmark not defined.

Sampling ... Error! Bookmark not defined.

Random Sampling Techniques ... Error! Bookmark not defined.

Simple Random Sampling ... Error! Bookmark not defined.

Stratified Random Sampling ... Error! Bookmark not defined.

Systematic Sampling ... Error! Bookmark not defined.

Cluster (area) Sampling ... Error! Bookmark not defined.

Sample distribution of sample proportion p ... Error! Bookmark not defined.

The t-distribution ... Error! Bookmark not defined.

Hypothesis Testing ... Error! Bookmark not defined.

Type I error (alpha) ... Error! Bookmark not defined.

Type II error (beta) ... Error! Bookmark not defined.

The six-step approach to hypothesis testing ... Error! Bookmark not defined.

Simple Regression Analysis ... Error! Bookmark not defined.

Time-series forecasting and index numbers ... Error! Bookmark not defined.

Trend Component ... Error! Bookmark not defined.

Seasonal Component ... Error! Bookmark not defined.

Cyclical Component ... Error! Bookmark not defined.

Irregular component ... Error! Bookmark not defined.

Business Analytics

Business analytics is important in today’s business environment due to the extensive technology advancements and advanced business planning.

Descriptive Analytics

A statistical method that is used to search and summarize historical data in order to identify patterns or meaning.

Predictive Analytics

Encompasses a variety of statistical techniques from data mining, predictive modelling, and machine learning, that analyse current and historical facts to make predictions about future or otherwise unknown events.

Prescriptive Analytics

Third and final stage of business analytics, which also includes descriptive and predictive analytics.

Four Groups of Data Classifications - Geographical

- Chronological - Qualitative - Quantitative

Data Visualisation in Business Analytics

Allow not only the analyst, but also business decision makers to quickly examine large

amounts of data, understand trends and issues efficiently, streamline faster, and make

more accurate decisions by allowing the key people to see the right data at all times.

Descriptive Summary Measures

Measures of Central Tendency

yield information about the centre, or middle part of a

set of numbers.

The Mode

is the most frequently occurring value in a set of data. If two data sets are

said to be the mode then this is called bimodal.

The median

is the middle value in an ordered array of numbers. If there is two

values of the middle, then it is the average of the two numbers.

The arithmetic mean

is the average of a set of numbers and is computed by

summing all numbers and dividing by the sum of the count of numbers.

Measures of location

yield information about certain sections of a set of numbers

when ranked into an ascending array.

Percentiles

are measures of location that divide a set of data so that a certain

fraction of data can be described as falling on or below this location. The Pth percentile is the value such P% of the data are equal to or below that value, and (100-P)% are above or equal to that value.

Quartiles are measures of location that divide a set of data into four subgroups or parts.

Q1 (25%), Q2 (median) and Q3 (75%).

Measures of Variability

The Range is the difference between the minimum and the maximum values of a data set.

Range = maximum – minimum

The interquartile range or IQR, is the distance between the first and third quartiles.

IQR = Q3-Q1

The variance is the average of the squared deviations from the mean for a set of numbers.

Formula on pg 74.

The standard deviation is the square root of the variance.

The Empirical Rule is an important rule of thumb that is used to state the approximate percentage of values that lie within a given number of standard deviations from the mean set of data are normally or approximately distributed.

The Normal Distribution is a unimodal and symmetrical distribution that is often

referred to as the bell curve.