How data analytics is different from statistics
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.
Consider the organization you work for (or another organization you’re familiar with). Does this organization use data analytics?If so, how is it used? If not, how could the organization use data analytics to improve its performance?
Sample Solution
How data analytics is different from statistics
Data analysis and statistical analysis are used hand in hand to solve business problems, however, the data analytics tools and overall process holds key differentiators when compared to common statistical methods. Statistical analysis is used in order to gain an understanding of a larger population by analyzing the information of a sample. Data analysis is the process of inspecting, presenting and reporting data in a way that is useful to non-technical people. Analytics helps you form hypotheses, while statistics lets you test them. Analytics falls into three categories: descriptive, predictive, and prescriptive. The difference among the three is that descriptive analytics tells you what happened in the past, predictive analytics predicts what is most likely to happen in the future, and prescriptive analytics recommends actions you can take to affect those outcomes.
