Types of

Data Analysis
A Topic of PL 300
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In our previous resource, we understood data

analysis and its importance through a story.

In case you missed it, check it out first!

Now, let's dive into the topic: Types of Data Analysis

There are five types of Data Analysis:

Descriptive

Diagnostic

Predictive

Prescriptive

Cognitive

Let's understand them using an example that we frequently use in our daily
lives. Can you guess what it is?

Here is a clue:
I don't travel, but I know every street on the earth. Who am I?
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Yes, you are correct,

I am Google Maps.

Now, let's understand the types of analysis using Google Maps.

1 Descriptive Analysis: What Happened?

Descriptive analytics helps answer questions about what has happened
based on historical data. It aims to describe or summarize a set of data.

By developing key performance indicators (KPIs), these strategies can help

track the success or failure of key objectives.

How does Google Maps use Descriptive Analysis?

When you search for a route between two places, Google Maps shows
summarized data like the average time taken by car, bus, or bike and the
total distance between these two places.
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2 Diagnostic Analysis: Why it Happened?

Diagnostic analytics helps answer questions about why events happened.

Diagnostic analysis takes the insights gathered from descriptive analytics
and drills down to find the causes of those outcomes.

It's about understanding the root causes and behaviours within data.

How does Google Maps use Descriptive Analysis?

When you search for a route between two places at different times, you can
see that the travel time varies.

Diagnostic analysis helps us identify that it takes more time due to traffic,
especially during office hours. This analysis calculates the travel time based
on historical data.
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3 Predictive Analysis: What Will Happen?

Predictive analytics helps answer questions about what will happen in the
future.

Predictive analysis uses statistical models and machine learning techniques

to understand the future or the likelihood of a future outcome based on
historical data. It involves identifying trends, patterns, and relationships
in data to predict future outcomes.

How does Google Maps

use Predictive Analysis?
Google Maps employs predictive
analysis extensively to forecast
traffic conditions, travel times, and
the different routes possible to
reach the destination.
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4 Prescriptive Analysis: What Should Be Done?

Prescriptive analytics helps answer questions about which actions should

be taken to achieve a goal or target.
Prescriptive analysis goes a step further by not only predicting the future
but also suggesting actions that could beneficially impact those
predictions.

How does Google Maps use Prescriptive Analysis?

Prescriptive analysis in Google Maps is seen in its route optimization
suggestions. Google Maps doesn’t just forecast delays but also suggests the
best possible routes in real time.
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5 Cognitive Analytics:

Cognitive analytics is a type of analysis that uses AI and machine learning

to gain insights from data. It is able to process and understand large
amounts of both structured and unstructured data.

Cognitive analytics integrates self-learning systems that use data mining,

pattern recognition, and natural language processing to mimic the way the
human brain works.

Cognitive Analytics is a relatively new and advanced field compared to the

other types of analysis.
 E n a b l i n g C a r e e r s

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