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Types of Data Analysis

Data analysis is classified into several types, including Descriptive, Diagnostic, Predictive, and Prescriptive Analysis, each serving distinct purposes. Descriptive Analysis summarizes past data, Diagnostic Analysis identifies causes of events, Predictive Analysis forecasts future outcomes, and Prescriptive Analysis recommends actions. Additional types like Exploratory, Inferential, Causal, and Mechanistic Analysis further enhance data-driven strategies.

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63 views2 pages

Types of Data Analysis

Data analysis is classified into several types, including Descriptive, Diagnostic, Predictive, and Prescriptive Analysis, each serving distinct purposes. Descriptive Analysis summarizes past data, Diagnostic Analysis identifies causes of events, Predictive Analysis forecasts future outcomes, and Prescriptive Analysis recommends actions. Additional types like Exploratory, Inferential, Causal, and Mechanistic Analysis further enhance data-driven strategies.

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learningmaterial68
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Types of Data Analysis

Data analysis can be broadly classified into several types, each serving unique purposes and
addressing specific questions. The main types are:
Descriptive Analysis
Diagnostic Analysis
Predictive Analysis
Prescriptive Analysis
(Others include Exploratory, Inferential, Causal, and Mechanistic Analysis)
Below is a table summarizing the key differences between the main types of data analysis.

Comparison Table: Types of Data Analysis


Main Question
Type Purpose Typical Techniques Example Use Case
Answered

Statistics (mean,
What Summarize past Monthly sales reports,
Descriptive median), charts,
happened? data/events KPI tracking [1] [2] [3]
dashboards

Correlation, root Investigating a sales


Why did it Discover reasons or
Diagnostic cause analysis, drill- drop, error analysis [1] [2]
happen? causes [3]
down

Customer churn
What could Forecast future Regression, machine
Predictive prediction, demand
happen next? outcomes learning, forecasting
forecasting [1] [2] [3]

Optimization, Route optimization,


What should Recommend
Prescriptive simulation, decision strategy suggestion [1]
we do? actions/solutions [2] [3]
rules

Explanation of Each Type


Descriptive Analysis: Focuses on summarizing historical data to identify patterns and
trends. It is foundational and helps organizations understand their previous performance [1]
[2] .

Diagnostic Analysis: Seeks to explain why certain events or outcomes occurred by finding
relationships between variables. It helps pinpoint causes for business problems [1] [2] .
Predictive Analysis: Uses statistical models and historical data to predict future outcomes.
It is key for proactive decision-making [1] [2] .
Prescriptive Analysis: Goes beyond predicting the future by providing recommendations
on what actions to take to achieve desired outcomes or avoid risks [1] [2] .
Additional Types (Brief)
Other specialized types that expand upon the four core types include:
Exploratory Analysis: Identifies unknown patterns without having a prior hypothesis, often
performed in the early stages of data exploration.
Inferential Analysis: Generalizes findings from a sample to a larger population.
Causal Analysis: Establishes cause-and-effect relationships between variables.
Mechanistic Analysis: Measures the exact effect that changes in certain variables have on
others, often used in complex systems [4] [5] .
These analytical approaches are often used in combination to create robust, data-driven
strategies and informed decision-making within organizations [1] [2] [3] .
⁂

1. [Link]
2. [Link]
3. [Link]
4. [Link]
5. [Link]

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