Data analysis

• What is data analysis?


  The transformation of raw data into helpful information for business analysis
• What are the uses of data analysis in business?


  • Measure performance
  • Compare departments
  • Identify areas for improvement
  • Solve problems
• What are some common methods for presenting data?

  Pie charts, bar charts, histograms, line graphs, maps, index numbers
• What does a pie chart display?


  The percentage of a category represented as a portion of a whole
• How do you calculate the percentage of a product's revenue in a pie chart?


  Add total revenue and divide the product's revenue by this total, then multiply by 100
• What are the limitations of pie charts?


  They only show data in percentage form and do not indicate trends over time
• How can pie charts lead to further investigation in business?


  They highlight areas of strong and weak performance that require deeper analysis
• What do bar charts display?


  The amount of something for specific groups or categories
• How do histograms differ from bar charts?


  Histograms display continuous data without gaps between bars
• What type of data do histograms represent?


  Continuous data such as age, price, or time
• How can a firm use histogram data?


  To identify trends and target areas performing well or poorly
• What do line graphs display?


  Continuous data, similar to histograms, but with points connected by lines
• What is a common use of maps in business data presentation?


  To show outlet numbers or sales revenue in different areas
• How can a choropleth map be useful for a business?


  It shows average incomes in different areas, aiding location decisions
• What are index numbers used for?


  To present changes over time as a percentage of a base year
• How is the base year value represented in index numbers?


  It is given a base value of 100
• Why are index numbers useful?


  They allow comparison of variables with different values and show trends easily
• What are the limitations of index numbers?


  They only show changes relative to one year and may not provide raw data
• How can data analysis be flawed?


  Data can be outdated, conclusions may not be clear, and accuracy can be questionable
• Why are pie charts useful?


  • Relative sizes can be easy to spot​
  • Quicker to compare large differences than using a table​
  • % values can be added to make it more detailed​
  • Handy when data can be put into clear categories