GM103C DATA-ANALYTICS

1. BASIC PROBABILITY
 OUTCOME OF THE COURSE

1. Able to estimate the likelihood of important events in business (Evaluate).

2. Able to make inferences about population based on suitable samples (Evaluate).
3. Able to design experiments for identifying association between variables (Create).
4. Able to analyse difference between population proportions (Evaluate).
5. Able to develop model to identify causal relationship between variables (Create).
DATA-ANALYTICS – STEPS & SOFTWARE

Problem Definition
Software

Collecting the Data

MiniTab
Data Preparation
SPSS

Statistical Test – Selection R

Comparison, Correlation & Prediction
Micro-Soft Excel
Interpretation
Matlab

Decision-Making - Business
 INTRODUCTION – DEFINING VARIABLES

Variables Variables
Variables

Categorical
Categorical // Qualitative
Qualitative Numeric
Numeric // Quantitative
Quantitative
Age
Age

Weights
Weights Nominal
Nominal Discrete
Discrete

Disease(Y/N)
Disease(Y/N) Disease(Y/N)
Disease(Y/N) ## Births
Births in
in aa day
day

Bio.Sex
Bio.Sex (M/F)
(M/F) Bio.Sex
Bio.Sex (M/F)
(M/F) ## Accidents
Accidents

Satisfaction
Satisfaction Level
Level
Ordinal
Ordinal Continuous
Continuous
Coffee
Coffee Size
Size

## Births
Births in
in aa day
day Satisfaction
Satisfaction Level
Level Age
Age

## Accidents
Accidents Coffee
Coffee Size
Size Weights
Weights
INTRODUCTION – COLLECTING DATA

1. Collecting Data
a. Populations and Samples
b. Data Sources – Primary & Secondary Data
2. Types of sampling Methods
INTRODUCTION - DATA PREPARATION

1. Data Cleaning
2. Data Formatting
3. Stacked and Unstacked variables
4. Recoding Variables
INTRODUCTION - TYPES OF SURVEY ERRORS

1. Coverage Error - Coverage error results in a selection bias.

2. Nonresponse Error
3. Sampling Error
INTRODUCTION – ORGANIZING VARIABLES

1. Organizing Categorical Variables

a) Summary Table
b) Contingency Table
2. Organizing Numerical Variables
a) Frequency Distribution
b) Classes and Excel bins
c) Relative Frequency Distribution and the Percentage Distribution
d) Cumulative Distribution
INTRODUCTION – VISUALIZING VARIABLES

1. Visualizing Categorical Variables

a) Bar Chart
b) Pie chart and Doughnut chart
c) Pareto chart
2. Visualizing numerical Variables
a) Stem-and-leaf Display
b) Histogram
c) Percentage Polygon
d) Cumulative Percentage Polygon (Ogive)
e) Scatter Plot (Two Variables)
f) Time-Series Plot (Two Variables)
INTRODUCTION – NUMERICAL DESCRIPTIVE MEASURES

1. Central Tendency – Mean, Median and Mode.

2. Variation – Range, Variance, Standard Deviation, Coefficient of variation & Z Scores.
3. Shape – Skewness & Kurtosis
4. Exploring Numerical Data – Quartiles, Interquartile range & Boxplot
5. Numerical Descriptive Measures for a Population - Population Mean, Population Variance and Standard
Deviation.
6. Covariance and the Coefficient of Correlation
7. Using R and R Studio
4.1 BASIC PROBABILITY CONCEPTS

What is Probability?
 Numerical descriptions of how likely an event is to occur.
 Price of a stock increasing, a rainy day, a defective product, or the outcome five dots in a single toss of a die.

 Value ranges between 0 and 1

 Probability of occurrence = X/T
 X = Number of ways in which the event occurs
 T = Total number of possible outcomes
4.1 BASIC PROBABILITY CONCEPTS

Three types of probability:

 A priori probability - based on prior knowledge of the process involved.
 Empirical probability - based on observed data. Surveys are used to generate empirical probabilities.
 Subjective probability - subjective probability differs from person to person.
 Combination of an individual’s past experience, personal opinion, and analysis of a particular situation.

 Subjective probability is especially useful in making decisions in situations in which you cannot use a priori probability or empirical probability.
THANK YOU
DR T SAKTHI NAGARAJ
ASSISTANT PROFESSOR
SCHOOL OF BUSINESS
AMRITA VISHWA
VIDYAPEETHAM
COIMBATORE – 641112
CELL: 8610808385